Seeking Alpha·2025-12-26 11:54Group 1: Consumer Sentiment and Economic Indicators - Consumer sentiment for December was revised down to 52.9 from an initial estimate of 53.3, although it improved from 51.0 in November [4] - The Consumer Price Index rose 2.7% year-over-year in November, with regional variations; for example, inflation in Southern California was 4.5% compared to 1.1% in Dallas [4] - Year-ahead inflation expectations declined for the fourth consecutive month to 4.2%, the lowest level in 11 months, but still above the 3.3% recorded in January [5] Group 2: Capital Expenditures in the Tech Industry - Major tech companies, including Alphabet, Amazon, Microsoft, and Meta, are significantly increasing their capital expenditures (CapEx) in AI infrastructure as competition intensifies [9] - Meta expects its 2025 CapEx to be in the range of $70 billion to $72 billion, up from a prior outlook of $66 billion to $72 billion [10] - Alphabet raised its CapEx forecast for 2025 and 2026 to between $91 billion and $93 billion, up from a previous estimate of $85 billion [12] - Amazon reported cash CapEx of $34.2 billion in Q3 and a total of $89.9 billion spent so far this year, emphasizing continued significant investments in AI [13] Group 3: Market Outlook and Predictions - The S&P 500 is predicted to rise another 10-15% in 2026, driven by strong spending in technology and the resilience of major companies against tariffs [14] - The tech sector is expected to maintain expanding profit margins even as it enters lower-margin businesses like AI [14]