Squawk on the Street SOTS 2nd Hour: The AI Bubble Debate, EA Goes Private, & Pot Stocks Light Up 9/29/25
10 snips
Sep 29, 2025 Tech stocks are bouncing back as debates rage over sky-high AI valuations. A notable former Tesla executive weighs in on the impact of expiring EV tax credits. EA's massive $55 billion buyout leads the discussion on strategic corporate moves, while a shift in cannabis regulations sparks interest in pot stocks. Insightful takes on AI markets suggest unprecedented growth justifies current prices, despite fears of a bubble. Plus, a new CEO at CSX raises hopes for revitalized operations amid investor pressure.
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Tech Leads Despite Macro Risks
- Tech is leading the market rebound even as Treasury yields tick higher and AI valuations face scrutiny.
- Hosts frame the week's market risk around a potential government shutdown and shifting Fed expectations.
Labor Market Drives Fed And Markets
- Labor market weakness is central to Fed policy and market positioning, with job growth decelerating sharply.
- Market participants are pricing in that Fed easing could be the key cushion for corporates and economic adjustment.
Watch Fed Easing As A Market Catalyst
- Expect markets to rally if the Fed delivers quicker accommodation that lowers corporate interest expenses.
- Monitor rate-cut expectations closely because they materially change corporate margins and hiring incentives.