Wall Street Breakfast Podcast: Three Forces Defined 2025

Economic Sentiment - 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] - 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] Capital Expenditure Trends - Major tech companies, including Meta, Alphabet, Amazon, and Microsoft, are significantly increasing their capital expenditures (CapEx) in response to the growing demand for AI infrastructure [9] - Meta's expected CapEx for 2025 is now 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 $85 billion [12] - Amazon reported cash CapEx of $34.2 billion in Q3 and a total of $89.9 billion spent so far in the year, with continued significant investments in AI [13] Market Outlook - The S&P 500 is predicted to rise by another 10-15% in 2026, driven by strong spending in technology and the resilience of major companies against tariffs [14]