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Squawk on the Street

SOTS 2nd Hour: Holiday Retail, Commercial Real Estate & Qualcomm vs. Arm Trial 12/16/24

Dec 16, 2024
Investors face a critical week with the Federal Reserve's final rate decision of 2024 looming. SoftBank's CEO, Masa Son, announced a massive $100 billion investment in the U.S. aimed at creating 100,000 AI-related jobs. In commercial real estate, post-pandemic office leasing hits new highs. Retail trends reveal strong holiday sales among accessories and beauty products, while the marketplace shifts from mutual funds to active ETFs. Key legal battles, particularly between Arm Holdings and Qualcomm, could shape the future of AI technology.
42:41

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Quick takeaways

  • The Federal Reserve's potential interest rate cuts are shaping market expectations amid ongoing inflation concerns and economic indicators.
  • Softbank's CEO plans a $100 billion investment in the U.S. focused on AI, aiming to create 100,000 jobs over four years.

Deep dives

Market Trends and Federal Reserve Insights

Stocks are showing a positive start to the week, with the S&P and NASDAQ posting gains driven primarily by the technology sector. The Federal Reserve's potential interest rate cuts are central to market expectations, as investors anticipate adjustments due to key inflation data coming later in the week. Although a significant portion of traders foresee rate reductions, there is uncertainty among Fed officials regarding inflation, making it unclear how many cuts to expect moving forward. Market analysts express differing views on the future trajectory of rates as they consider various economic indicators, including employment data and inflation trends.

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