AI Boom & Data Centers - The AI boom is considered real, and the focus should be on when it will end rather than if it's a bubble [1] - Debt is fueling the AI cycle by financing the data centers needed for AI compute [2] - Every AI company claims increased compute leads to increased revenue, which could indicate whether or not a bubble exists [2][3] - The ROI from AI investments is currently present, with consumers and enterprises deriving value [3][4] - Demand for data centers is high in the private markets [5] Private vs Public Markets - Private markets show broader enthusiasm for AI compared to public markets [6] - There may be more scrutiny and differentiation between potential winners and losers in the public markets [6] IPOs & Market Conditions - IPOs offer benefits like capital raising for data center construction and providing liquidity to employees, founders, and investors [9] - The market needs sufficient capital formation and secondary/exit liquidity to meet the needs of AI companies [10] - After a Q1 hiccup, the IPO market has largely returned to normal, supported by a stable/cutting Fed and a public market up 17% year-to-date [10][11][12] - IPO volumes are up 18% this year, with total proceeds up 89% [12] - The average IPO is up 30% this year [12]

Morning. Christina Parts Neville joins us with how Wall Street sees the AI trade right now and Sim Modi has a closer look at how some of these widening bond yields for Oracle and some other hyperscalers might be a warning sign for a bubble. Let's begin with KP. Morning KP. >> Good morning Carl. Well, the Magnificent 7's grip on the market is loosening through November. The mega cap tech cohort accounted for roughly 43% of the S&P 500 gains, but that influence is fading. Investors are questioning the sustain ...

Our senior economics reporter Steve Leeman is here at Post9 with the numbers. And Steve, this question about how inflation is impacting holiday spending. >> We're calling it inflation the red-nosed reindeer.How it's really leading spending. Uh it's factoring heavily into consumers views on spending this holiday season. The All-American Economic Survey finding it's affecting where people choose to shop and of course how much.Of the thousands people surveyed across the nation, uh here are some of the results ...

The FDA has been an agency under fire. From controversial staff appointees to deep staffing cuts to being openly questioned by former FDA chiefs about medical policies. Now CNBC has learned that in the depths of the government shutdown, the FDA approved sending staffers on a quarter of a million dollar trip to a conference in Singapore, prompting questions about the AY's priorities.Here's Melissa Lee with that story. On the last day of the government shutdown, employees from the Food and Drug Administration ...

Yeah, home builder sentiment for single family homes in December rose one point to 39 on the National Association of Homebuilders index. That's a small beat. The street was looking for unchanged, but anything below 50 is considered negative and sentiment has now been below 50 for all of this year.Now, of the index's three components, current sales conditions increased 1 point to 42. Future sales expectations rose 1 point to 52, the only one that positive. And buyer traffic was unchanged at a low 26.Builders ...

Let's bring in Moody's Analytics chief economist Mark Xandandy who I assume Mark you've you've been listening in. Do you do you have a do you do you have an opinion on on one or the other and qu this question about credibility and how close they are to the president. >> I think they're both reasonably good choices, Sarah. I mean I I know Kevin I guess they're both Kevin.I know them pretty well. They're good economists. They are very experienced.Uh both uh lived and worked through the financial crisis. So th ...

Getting some breaking news out of the Fed this morning. We'll turn to Steve Leeman with that who's also got a piece on the wires. Now, Steve, that's [music] uh pretty interesting.We'll get you the Williams headlines first, though. >> Yeah. John Williams, New York, Fed President, saying monetary policy is well positioned as we head into 2026.That is language the Fed chair used at the meeting recently that people took to say the Fed was on hold, but not entirely clear. This is where Williams is headed. He say ...

Joining us now, Rashir Charmer, Rockefeller International chairman, and he's the founder of Breakout Capital. All right, Rashier, you want to go through them one through four quickly if you have time. Tell me whether we're in fact in a bubble.>> Yeah, David, as you know, there's a bit of a bubble and bubble talk these days, uh, which is that everyone's talking about a bubble, but there is no standard definition of a bubble. So what I've tried to do in my FT oped this morning uh is to lay out the a framework ...

Let's get to the broader markets. Our next guest is bullish about the new year. Says worries about tech's high valuations are misplaced.Joining us here this morning at Post9 is Tally Leisure, chief market strategist at the Wealth Consulting Group. Nice to have you in T. Welcome.>> Thank you. Good to be here. At least to have you, Dad.>> You're uh you're pretty constructive on next year. >> Yes. And I'm glad we're sitting down for that conversation because we see the S&P 500 achieving 85 8500 >> 8500 driven ...

Carl. Yeah. Homebuilder sentiment for single family homes in December rose one point to 39 on the National Association of Homebuilders index.That's a small beat. The street was looking for unchanged, but anything below 50 is considered negative, and sentiment has now been below 50 for all of this year. Now, of the indexes, three components.Current sales conditions increased one point to 42. Future sales expectations rose 1 point to 52, the only one the positive. and buyer traffic was unchanged at a low 26.B ...