Bloomberg Surveillance Bloomberg Surveillance TV: May 21, 2025
May 21, 2025
Saira Malik, CIO and Head of Equities & Fixed Income at Nuveen, shares her insights on softening U.S. economic growth and market dynamics. Terry Haines, founder of Pangaea Policy, dives into tax bill negotiations and the SALT deduction debate on Capitol Hill. Bill Dudley, former president of the Federal Reserve Bank of New York, discusses the Fed's communication strategies and the complexities of navigating inflation and economic uncertainty. The conversation also touches on the rising trend of corporate migration to Dallas, emphasizing a significant shift in the investment landscape.
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Bond Market Worries on Deficit
- The bond market fears long-term deficit increases, causing yields to rise despite short-term economic stimulus from the tax bill.
- Rising yields near 5% on the 10-year could start to make equities nervous amid geopolitical and tariff uncertainties.
US Tech Fuels Market Confidence
- U.S. equity market fundamentals remain strong, driven by technology and AI earnings growth.
- Despite lofty valuations, investors are eager to buy dips fueled by solid first quarter earnings and AI momentum.
Dominant AI Players Maintain Lead
- AI spending continues to increase, with dominant players like Microsoft maintaining leadership.
- Software companies benefit from AI by boosting productivity and client cross-selling opportunities.