Squawk on the Street
Apple’s Services Boost, Live: Chicago Fed President Goolsbee, Pres. Trump to Meet with Nvidia’s Huang 1/31/25
Jan 31, 2025
Austan Goolsbee, Chicago Fed President, shares keen insights on the latest PCE inflation data and its implications for monetary policy. He discusses the potential economic impact of President Trump's 25% tariffs on Mexican and Canadian goods, highlighting concerns over agricultural imports and trade dependencies. The conversation also touches on market dynamics, particularly Apple’s challenges in iPhone sales and its optimistic AI growth strategy. Goolsbee emphasizes the cautious optimism regarding inflation while navigating the complexities of interest rates.
41:39
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Quick takeaways
- The potential 25% tariffs on Canadian and Mexican goods raise significant concerns about consumer price increases in the food industry.
- Apple's resilience amidst declining iPhone sales can be attributed to record-high profit margins from its services business and AI strategy.
Deep dives
Market Recovery and Sector Performance
Stocks are showing signs of recovery on the last trading day of the week, with the Nasdaq climbing over 1% despite initial losses. While there was a downturn earlier in the week, particularly due to concerns surrounding DeepSeq, the market has bounced back, with the S&P turning positive. Key sectors such as communication services, consumer discretionary, information technology, healthcare, and real estate are driving this recovery, with major players like Broadcom, Meta, Tesla, and Google performing well. Apple's recent results also contributed to investor optimism, despite a decline in iPhone sales, thanks to record-high profit margins stemming from its services business.
