Closing Bell Closing Bell Overtime: Nasdaq Closes Above 19k As Risk Appetite Returns 5/13/25
May 13, 2025
In a lively discussion, market experts dissect the recent surge in the S&P 500 with Coinbase making its debut. Insights into Supermicro's AI strategy reveal why Wall Street is taking notice. CyberArk's pivot toward a subscription model and its implications for cybersecurity are explored. The conversation also covers investor sentiment shifts towards risk, including Tesla's return to a trillion-dollar valuation. Finally, cracks in the high-end art market and new opportunities in equities and fixed income are highlighted, making for a fascinating listen.
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U.S. Exceptionalism and Tech Value
- U.S. exceptionalism remains strong with fixed income and international markets showing new dynamics.
- Recession fears have lessened, lowering the probability to 30-35%, which is boosting mega cap tech valuations.
Mega Cap Tech vs Rising Rates
- Mega cap tech firms handle 4.5% ten-year yields better than small and mid caps.
- Rate cuts are less likely soon, and these larger firms exhibit quality by managing these rate levels well.
Expect Limited Fed Rate Cuts
- Investors should not anticipate near-term Federal Reserve rate cuts despite softer inflation prints.
- The labor market's resilience and fiscal policy shifts suggest the Fed will likely remain on the sidelines for now.