Closing Bell - Closing Bell: Gundlach’s First Take on the Fed & a Big Tech Set-Up. 10/29/25

Episode Date: October 29, 2025

DoubleLine Capital’s Jeffrey Gundlach gives his first, instant reaction to the Fed decision and Chair Powell’s news conference. He breaks down his forecast for stocks and the economy. Plus, it’s a big afternoon for big tech. Meta, Alphabet and Microsoft all report in Overtime. We break down what to watch and discuss with experts Mike Santoli, Big Technology’s Alex Kantrowitz and NewEdge Wealth’s Robert Sechan.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

We begin with breaking news. December is not a foregone conclusion. Far from it. The declaration of the afternoon from Chair Powell following the Fed's quarter point rate cut, markets at least initially, not so much in love with that comment. Stocks did move lower. You can see the Dow and the S&P are still in the red. Yields moved up.

At the same time, though, Chair Powell gave a pretty good review of the economy, saying it expanded at a moderate pace, at least based on what they can see because they're not getting government data. As you know, the chairman giving a nod to that a couple of times in the statement, as well as in the news conference. Welcome to closing bell, everybody. I'm Scott Wapner here at the New York Stock Exchange. We do have a very big hour ahead for you.

We'll take you right up to those mega-cap earnings coming at the top of the hour. We'll also discuss Nvidia hitting $5 trillion in market cap today, the first company to ever do that. We do begin, though, of course, with our Fed Day exclusive. Double-line Capital founder and CEO Jeffrey Gunlock on this incredible. incredibly important day in the markets, Jeffrey. It is only fitting that you are here with us yet again. Welcome back. Thanks, Scott. Thanks for having me back again. I think this is our 38th time after Fed Day, or 39th. I'm starting to lose count. All right. Well, I'm glad we

have continued the tradition. I really hit on that at the top. December is not a foregone conclusion. Far from it. Chair Powell went out of his way to say that. Yeah, you're right. Yeah, you're Right. In fact, that was going to be my phrase of the press conference. So you've got, you're on the same page that I am, not a foregone conclusion. And then he reinforced that with far from it. And then he went back to that theme a little bit later on in the Q&A when he said, what do you do if you're driving through a fog, you slow down, which is kind of, sounds to me like if we don't have any more data, I think that we need to price out to a certain extent. the, well, was an assumption by the market that there was going to be almost with 90 plus percent certainty a cut in December. And I would say that that has been reversed or should be reversed. It's begun to be reversed. But I think it should be reversed fairly substantially. I might even put it at 50-50 when he says that there's a, you know, far from a foregone conclusion. I saw it in the in the pregame before the Fed announcements. I saw Rick Centelli talk about how the

two-year treasury and the 10-year treasury haven't changed since the last meeting, and he's right about that. I'd amplify that point, though, that the two-year treasury is down since before the Fed started cutting, or the day after the Fed's first rate cut back in September of last year, the two-year treasury rate is down all of five basis points. That's it. And the Fed has cut rates 150 basis points. Meanwhile, the 10-year treasury rate and the long-term bond rate are up since the first rate cuts, you know, steepening out the yield curve. And I think that one thing I've been contextualizing all through these Fed cycles is that the Fed tends to gravitate towards the two-year treasury yield with the Fed funds rate. So back in September of last year, there was about 150 basis

point spread between the Fed funds rate and the two-year treasury, but the two-year treasury being much lower But now that the Fed's brought the rates down, they're very much in the context of the two-year Treasury now with only about a quarter point difference between the two. So I think what's really happened here, of course, is that we've seen tremendous rallies in financial assets this year. I mean, everyone's focusing on the stock market in the United States, but Europe's done well as well. Emerging markets have done even better.

And bonds have done surprisingly well versus most people's expectations. This is actually for the investment-grade bond index, it's most commonly followed. Out of the last 49 years, this is the 11th best year following some pretty terrible years, particularly in 2022. So I think that we're looking at the possibility for a steeper yield curve. I think it's interesting that they're saying that they're going to let the maturing mortgage-backed securities. They're going to reinvest them in T-bills.

And he mentioned in his comments, Jay Powell, that they want to reduce the direct. of their balance sheet, which means that they're going to continue to emphasize shorter-term securities, which is curious because that's the interest rate that they can control, that the Fed can control. So if they're really interested in thinking about reducing interest expense on the now 38-plus trillion-dollar national debt, it's kind of a clever way to do it to continue to manipulate balance sheet holdings into shorter dated securities, and then you can do QE again if you need to.

And I think that they may ultimately manipulate mortgage rates lower by possibly doing quantitative easing when the environment calls for it to get mortgage rates down. One of the biggest problems, Jay Powell correctly talked about and the inflation level has come down, but the price level is still very, very high versus five years ago. That also bleeds over into housing affordability, which is really bad compared to where it was far. years ago. Home prices have gone way up, and mortgage rates are also higher than they were. And so it's just possible that they might want to buy mortgage-backed securities and get them to an even lower yield versus treasuries. I suspect that might be in the offing, not in the near term, but the intermediate term. And so we're quite positive on the agency guaranteed mortgage-back securities market, in spite of the fact that it's done very well in

recent months, now having more excess return versus treasuries than investment-grade corporate bonds, which have also done well. So it's been a great year for financial assets. A lot of that had to do with the Fed assumption of more Fed cuts. I would say that assumption is getting a little weaker after today's press conference. I like your willingness to give us, and our viewers, of course, actionable ideas. It's interesting. When you say that maybe you're taking your own expectations for December down to 50-50. It obviously leads towards the road of the dissents in which we got to today, expected, of course, from Myron who wanted 50 basis points, but Kansas City Schmidt wanted none at all. I also thought it was newsworthy that the chair

really underscored the idea of, in his words, decidedly differing views in the committee on what to do next. They got a battle in the room at this point. That's what it sounds like, and it's understandable, you know, given the shortness on data and the fact that Jay Powell admits repeatedly that they've got a problem with their dual mandate. They're both going in the wrong direction, or at least inflation's not going towards 2% right now. It's over 3, and we think it's going to stay above 3 year over year throughout, you know, things can change, but throughout 2026.

So the mandate, it's difficult to figure out what to do when, you know, as he said, we only have the Fed funds rate at the Fed meetings. And, you know, one mandate says cut it and one says don't cut it or even potentially raise it at the inflation rate. So, yeah, there's a battle in the room. And I think that's going to continue going forward. You know Myron is going to want 50 basis points every single meeting. I mean, that's where you're headed.

And I suspect that's a taste of where we're going to be in, say, the middle of next year when we have a new Fed chairman, which will probably be incrementally more dovish and maybe more than incrementally more dovish than Jay Powell has been. So it would be interesting to see what's going on. I just really believe that there's chances for lower interest rates with the new Fed chairman that could be below the inflation rate if possible. And we've certainly heard Donald Trump, and to a certain extent, echoed by Scott Besson, that they want rates lower, and lower doesn't mean three and seven-eighths in the middle point of the Fed funds rate where we are now. So we'll see what happens. But right now, we're just enjoying a really great year in financial assets.

I think one thing that's – I'd like the viewers to think about, you know, everyone knows that credit spreads are very tight, just like the stock market valuation is very high. those things naturally go together, but the thing is, while corporate bond spreads, the investment-grade corporate bond market are tight, they're only about 75, some days, 80 basis points, more than treasuries, that's a very tight level versus history. It's really never been significantly less incremental yield for corporate bonds. And the same is largely true of below-investment-grade corporate bonds, excluding the triple-C category, which has some stress in it, you've have the tightest spreads in the high-yield bond market, but both the investment-grade corporate bond market

and the high-yield bond market are better off in terms of their credit quality and their dynamics than they were back before the global financial crisis, which was the last time we had spreads this tight. People who think that the history echoes, they might be worried about corporate bond spreads, but there hasn't been much change in them. And the fact is that the junk bond market is actually smaller than it was. recent years because a lot of the really bad credit is going not into the public corporate bond market. It's going into the private credit market. And that's actually a good thing for the public investment grade and junk bond markets because it means that the junkier stuff

that would be a tell on what the default rate you might expect in the public bond market, it might be overstated this time because the defaults are showing up in more private categories. So we're not really negative. In fact, we added to to investment-grade corporate bonds at our most recent strategy meeting for the first time this year, simply because we think the fundamentals are quite good. And also, we don't like treasury debt at the longer end.

And the corporate bond market tends to issue in the investment grade side in the 10-year category. So the extent you want 10-year maturities, I think you might be just as safe in corporates as you are in long-term treasuries, because as the Fed eases interest rates, and as the deficit grows, We've seen that in this easing cycle that started 13 months ago,

long-term interest rates on treasuries have defied history. They have not gone down. Yes, they've gone down in the middle part of this year, but they're still higher and significantly higher than they were back before the first rate cut last September. So we're avoiding the long end of the treasury market. We rather have corporate bonds in the 10-year category. And we still like the best performing category more recently,

which has been local, emerging market debt, which is one of the best categories. Emerging markets broadly have done well, and if you're a dollar-based investor, you've done double well because you had done better on the index price changes, but you also have the currency translation, which translates to a profit for dollar-based investors. That's also true in the local currency emerging market bond market, which is the top performing sector in recent months. So we continue to be in that category.

I have reduced my interest in gold once we got above $4,000. You'll remember all year I've been talking about kind of a radical prediction that gold would go over $4,000. You did, including with me. Yeah, and it's gone up, it went up to almost $4,400, which is really nosebleed levels. I mean, there are sentiment indicators called Market Vane, a service that polls investors,

whether they're bullish or bearish on various categories, And you almost never get a bullish reading that's above the low 90s, but the gold reading a couple weeks ago was at 95, which is just unheard of. So last time we spoke, I talked about having 25% of a portfolio in gold or other types of hard asset things, which sounds high versus most people's recommendations, but it worked out pretty well. But I don't hold that any longer. You know, there was somebody on the pregame that said, what I think is now very timely investment advice. And that is, with all these market moves, you really want to think about rebalancing. Rebalancing is a very powerful tool. So you want to take things that are at nosebleed levels like gold was a couple weeks ago.

And, you know, if you had 25% gold, it probably turned into 35% of your portfolio. It was time to rebalance back down. Right now, I think gold has to correct for. further. We've seen about a 50% correction, maybe 40%. Oh, it's big up move. But I would put gold now in my portfolio down to 10%. And I would have 5% in other commodities, just a commodity index. So you end up with a little bit more than 10% gold and about 5% commodities. I still like 45% in stocks. You'd probably be higher than that now. You have to rebalance that because stocks of outperform bonds, but I still like having some dollar investor in emerging market

equities. I still like that, and I like non-US equities from evaluation perspective quite a lot. I like 25% in bonds, and it's the same game plan that we've been talking about. It's been working pretty much through the course of this year, and that's intermediate term bonds, maybe two years out to 10 years with more in the five years than the time. 10 years, but also, you know, not a lot of long-term treasury bonds. We own very, very little of long-term treasury bonds. We think the curve's going to steepen. And then we like these asset-backed securities and some commercial mortgage-backed securities, which I believe the market is starting

to accept even office commercial mortgage-backed securities. We're seeing interest. New York, there's always interest in Manhattan office, but we're starting to see better performance some better acceptance of Chicago office and surprisingly even some rumblings for San Francisco office. So this is a category that remains reasonably cheap. There's nothing super cheap in the entire financial markets right now. And then I would have about 15% in cash right now because I really think things are at a very aggressive level, not just gold, but which is certainly was at 4,400. But I certainly think that, you know, a stock market, which is very narrow in breadth.

I know it's better than it was before. But when I started following the stock market, it was in the early 70s. I was, you know, 12 years old. But, you know, they called it the nifty 50. And that preceded a pretty big correction down, a pretty big drop in 1974. But now we have the nifty 7.

So I know it's a little bit broader than that now. But, you know, there's a huge difference. It doesn't feel it sometimes. You know I'm not a momentum investor. I know. It doesn't feel it sometimes. And we do have those huge earnings coming up, so it's going to be front and center. Hang over with just a second.

Steve Leasman's come out of the room, Jeffrey. And Steve, I want to bring you in because I have to say, I don't remember a more forceful, I don't know if you want to call it rebuke. Maybe it's just a pushback on market expectations like we got today from Chair Powell, who went out of his way to underscore decision. December is not a foregone conclusion adding far from it. What do you think? I agree. He not only went out of his way to put some doubt into the December trade, but he noted that he was going out of his way to do that. It was pretty unusual. And it was in the prepared comments as if,

I don't know if the committee agreed to have this statement said, but let's listen to what Powell had to say about December. In the committee's discussions at this meeting, there were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it. Policy is not on a preset course. So, Scott, what's happened to the probability of a rate cut in December is it's gone down.

The last read I have, I'll give you one more here. 65%. It had been 85% going into this meeting. And January is sort of off the table as well. It's, well, actually, it's more in January now than it was in December. The direction is down when it comes to rates. I think that's pretty clear. The pace is something that Powell wants to reserve for the committee and the Fed as to how quickly it gets there. You could have listened to what Powell had to say today. Let me give you three things he said. Inflation is higher. than Target. They expect it to come down, but it remains, and it has accelerated for this year. That's one. And two, is that he does not see further weakening in the job market. So in that

regard, it would appear that the Fed is close to having bought the insurance policy that it wants against job weakness. So maybe not all the way there. So there's another quarter out there, probably Scott. But the pace at which the Fed gets there is unclear, and it may be that December is a pause as the Fed tries to kind of create consensus around where they want to go. I'm surprised Schmidt didn't dissent last month or last meeting, and I'm also surprised and would not be surprised if there would be further dissents for two reasons. One is the lack of data, and two is the idea that if the Fed keeps cutting with the inflation rate above target, it's going to create the possibility or the concern that the Fed is off of its 2% target and it does not want to be

there. Yeah, Steve, thank you. I mean, it certainly matches the decidedly differing views as well that the chair underscored today in the battle, if you will, in the room over what to do in coming meetings. That's our senior economics correspondent. Steve Leesman, we're back with Jeffrey Gunlock. And the thing I wanted to talk to you about now is something else that the chair said towards the end there. I don't see a broader credit issue. is how he answered a question regarding private credit. You've had some of the issues around subprime auto, obviously that we've all been focused on,

wondering because of what Jamie Diamond said, there's never just one cockroach. You told me like 13 months ago that you were concerned, and this was out at Future Proof, out in Huntington Beach. If you recall the conversation we had then, where I asked you, as everybody was talking about, the prospects of a private credit bubble, You said you saw one.

I'm wondering whether you now see the first cracks in it. Well, there sometimes is one cockroach. I mean, with that Silicon Valley Bank, that was sort of a one cockroach situation. A lot of people thought that was the beginning of something, and I was suspicious that I thought it might be contained, and it turned out that that was the case. But we are starting to see weaker activity in parts of the lower tiers. of the credit market, and there's been more than one sort of write-down or default scenario

that's already occurring, and they seem to be occurring kind of in a cluster. It's not like there's one, and then six months goes by, and then you get another write-down somewhere. They seem to be happening in a cluster, kind of like the layoffs are starting to happen in a cluster. So I think that private markets broadly have stopped out-performing public markets. That's certainly been the case in recent times with the public markets doing so well. I just think that there's going to be a liquidation that will occur in the next significant economic weakness period that is going to be surprising to people how much selling and unwinding there's going to be of what I think is an overinvestment in these private markets,

both private equity and private credit. We're already seeing signs of some major asset pools that have got themselves into illiquid positioning because of significant investment in private markets. And they don't have any money. That was famously Harvard University back when they were getting, you know, their donors were pulling back because it was going on campus. I think Yale's been talking about liquidating some of their private equity interests and the like. And that's usually the sign of overinvestment and the liquidity will dry up. and it will turn into sort of a liquidation cycle, that's my map. I don't think it has to happen this week, you know, but it's been a process that's

been developing over the course of this year, but I think that's going to be at the foundations of the next kind of financial problem that we have in the United States and perhaps beyond the United States borders, certainly there's a lot of investment in that category. So I caution investors, I think if you have liquidity options. Some funds, they allow a liquidity option. They'll give you a mark periodically on their private credit book. And if they allow a partial redemption and you don't see any degradation in the marks on the private pools, I would take advantage of that liquidity function because I think you're going to be getting out at a better level than you'd be able to get out at in future

quarters. So I'm very focused on private credit being an issue. Okay, I will follow that. You know, there's certainly a lot of focus on it. You've given our viewers a lot to think about today and plenty of actionable ideas. For that, I thank you. And I look forward to our next conversation, which will be after the next Fed meeting, which now, who knows? Now what seemed to be a foregone conclusion, Jeffrey, is going to be anybody's guest. I look forward to being with you then. Thank you. That's Jeffrey Gunlock out in California for us. We're now in the closing bell market zone as we look ahead to these big tech earnings,

which are really just 10, 15 minutes or so away in overtime. Julia Borson watching Meta, McKenzie Segalis on Alphabet, Steve Kovac on Microsoft, New Edge Wells, Rob Seach, owns them all. We're going to get this big setup. We have big technologies Alex Cantorwich, CNBC Senior Markets commentator Mike Santoli. We got a big group because it's a big month. moment, Julia, I start with you to set the scene on META. Well, Scott, expectations are high for META given his beat on revenue for 12 straight quarters and earnings 10 times in a row.

Those beats showed how META's AI investments improved user engagement and ad results. Q3 revenue growth is expected to hold steady at around 22% revenue growth. Meta did warn that growth would decelerate in Q4 on tough comps. So the question now is whether META's ramping AI investment. investments will continue to pay off for its chatbot and Vib's AI video sharing platform. The key number to watch is CAPX. Meta last quarter raised the midpoint of its full year. Capital expenditures range to $69 billion. Now we're watching to see how much higher the KAPX guide is. Analysts expect 47% growth in KAPX next year to $97 billion.

And overall analysts are bullish. 87% have a buy rating with a stock of $28,000. percent year-to-date. Back over to you. All right, Julia, thank you so much. Perfect setup as we go to McKenzie Segalis now on Alphabet. Hi, Mac. Hey, Scott. So investors are zeroed in on how Alphabet's core businesses are navigating the AI shift, especially search and cloud. So search remains the biggest pressure point. Google rolled out AI overviews and a new AI mode tab in Q2, but there's still no clear way to monetize it, and ads don't appear inside Gemini yet. Wall Street, though, is optimistic. J.P. Morgan

says early data on AI mode shows growing query volume and stronger engagement, which could lift advertiser ROI despite fewer paid clicks per search. Now on cloud, Wolf Research is bullish on momentum from new wins, including Anthropic, meta, and Open AI, as Google leans on its custom in-house AI chips to expand capacity and gain share. And then YouTube, now the top streaming platform by engagement, remains a growth engine too, expected to top $10 billion in ad revenue this reporter, Scott. Mackenzie, thank you. Can't wait to see what happens to Steve Kovac on Microsoft, $4 trillion market cap, and now a lot to live up to. Yeah, and also on a day, Scott, when the Azure Cloud Service is down, it's actually took down Microsoft's IR website. But anyway, the key thing to

watch here is Azure and the growth that has been fueled by AI. Yesterday, we got that opening I deal, and we know there's going to be that $250 billion commitment from OpenAI to spend on Azure Cloud. The difference with that deal and so many others that we've heard, this is a contracted deal. It's not nebulous like other deals. Open AI is done with companies like Oracle. So let's put away some of the worries about AI CAPX slowing down. I'll give you an example. I was in Wisconsin just last month looking at Microsoft's new data center being built. And right next door, before this one even opens, they're building another more expensive one. And Microsoft told us just a few weeks ago, they still can't meet all the demand, and they're, in fact, turning away customers so they can support

their current customers. Now, CFO, Amy Hood, three months ago in the last call, originally predicted they would catch up to demand this year. That's now pushed into next year. As for CAPEX guidance for the quarter, they are already trending to spend more than $100 billion for the fiscal year ending next June. We'll get some idea what the December quarter spend looks like in just a few minutes, Scott. All right. Thanks all. That was great setups for us. to begin our conversation right here on the desk, a.K. Alex Kanchowitz, who has the most approved tonight? I would say it's meta.

And, you know, it's one of those things where we'll see quarter to quarter. Meta will turn in some advertising, really impressive advertising results. But what I really want to hear from Mark Zuckerberg on the call today is some vision around his AI plan. Remember, he's invested billions of dollars in talent. He's reorganized his AI division many times. There was just a report last week that they're letting 600 people. go? Is meta just building another chat bot? And if so, how defensible is the money that they're

making today? Because I would say meta really faces a challenge long term as people decide that they want to become friends with these chatbots as opposed to mitigating their friends with humans through the online social media platforms. That is an existential threat for meta. I really believe so. And we're going to have to hear something from Zuckerberg about where they want to go. You feel the same way, Rob, as you own, as we said, all the three stocks, this being meta, the underperformer of late in the group? No question. It's meta. We need to see continued ad engagement measured by increasing price for ad, increased impressions, increased time spent, where AI investments have started to yield

results. Expectations are for daily active users to increase by 6%. Once again, that's remarkable for a company that has 3.5 billion active users. When outside of China, there are only 4.5 billion people with internet access. That suggests that 75% of the world has access to meta and is using them on a daily basis. Healthy trends, which suggests that the company can continue to invest heavily in their AI infrastructure, but it also allows them to aim for their long-term goal of having top tier models. Who do you have the most confidence in tonight, then, Rob? You know, we talked about it on your other show this week. Scott, it would have to be Google. I think they continue to quiet the narrative around search disruption and prove that

Google Cloud is gaining market share. Expectation are for search revenues to rise 11% year-on-year. That's up 9% from Q1 and matches the prior quarter. Healthy results here would illustrate that they are fending off increased competition from AI models like chat GPT. Cloud expectations are for 30% revenue growth year on year. That would be 8% sequential. It's a smaller base relative to Azure, but it suggests that they're gaining momentum. And customers look to Google for AI compute. and access to their AI models.

I think they can deliver on these. Plus, it's one of the, I think it's the least expensive of this cohort right now going in. So I think there's, that's the big news. I think the other thing, Scott, just one quick thing is it's hard to emphasize just how important these companies are. As the market gets more and more narrow,

the results from these companies are imperative for new highs. It's just given their size. in the indices, a bull market in the MAG 7 is a prerequisite for a bull market overall. And they've been experiencing supernormal growth. The question that we have is can that supernormal growth continue as they face stiffer competition from one another? We hear you.

And it's a perfect segue to bring Mike Santoli into the conversation because nobody sees the big market picture as well as you do. to tell us what's really riding on this. Now, if you say, well, rate cuts might be in question moving forward, does that make these all the more important now? Well, just look at the market action today, and it implies the stakes have risen for this segment of the market, kind of as Rob was saying. So after we got that admonition from Chair Powell,

that, hey, don't count on a December rate cut, whether, in fact, we take that and run with it or not, you see Homebuilder's down 3%. You've got regional banks down 2% on the day, and you have extreme negative breath in the overall market, even as the S&P 500 is slightly green, because NVIDIA is up because semis are up 2%. So I do think it's about market reaction

to what you know are generally going to be good numbers. And I would kind of agree with Alex in terms of meta. If there's going to be one company where the market will express impatience about the strategy or the volume of spending or the character of the spending, it might be meta. On the other hand, in terms of field position, And Google's way extended out there.

I mean, the confidence that Rob and a lot of investors have in the story is getting reflected in the stock. It's up 90% from the April, although it's up 10% in a week. Why is that? Well, it got too cheap. And so I think the question is, do you still have a valuation buffer in Alphabet? But in general, yes, the market has become more narrow and top heavy. And the very fashionable trade of last year going into 2025 and say, hey, rotate into the equal weight S&P, It's on the dead lows against a market cap-weighted S&P, unfortunately.

A.K., what do you make of what Rob Siechon had to say, the most confidence in Alphabet at a time where we are questioning where their search leadership is going to end up, based on some of the announcements that we have already gotten. Is it misguided or is he just right? Well, we know that Alphabet. I mean, they're going to grow double digits. We're about to hit the three-year anniversary of ChatChipT, and everybody believed that this would at least be some hit to Google's

We're starting to see that actual search behavior and conversations with generative AI are starting to diverge a little bit. They might be two separate behaviors. And by the way, Google has the model with Gemini, so they're going to be able to capture both. Then they have a story in terms of capital expenditures. Last quarter, the real story around Google was, oh, they're going to spend more to meet this demand around cloud. A couple weeks ago, they announced this deal with Anthropic, where Anthropic is going to spend tens of billions of dollars on their cloud services. So it's money that is leading to revenue on the Google side. So defending search, but also have a growing cloud story, is about as perfect of a position as you'd want to be if your alphabet, and they might actually have that.

Let's focus on the company that we have listed there across the bottom of your screen, flashed in red, for good reason, too, because Nvidia did become the first ever company to hit $5 trillion in market cap in market cap in market cap in market cap in market cap. in market cap. Rob, what is most amazing to me, certainly high on the list, it only took 80 trading days to add a trillion dollars in market cap for this company. July 9th, 4 trillion. Here we are late in October, and we've gone a trillion dollars higher. It's hard to imagine that there's any more important company in the entire world than NVIDIA. Look at yesterday, 70% of the S&P 500. stocks were down on the day. The average S&P 500 company was down 1%, and yet the index was positive thanks to the contribution from NVIDIA. You know, when you have an environment where

less than half the stocks in the S&P are trading above their 50-day moving average, that's usually a cautionary sign and tells us that there isn't much support for the market if we lose the leadership of the biggest AI and secular growth companies. You know, this virtuous cycle has to continue to deliver. You mentioned on your show earlier today a lot of the cuts that we're seeing in other parts of the market, Scott. You know, you need this to deliver. I'm going to move on to Mike Santoli. I appreciate you joining us.

I want to give Mike the last word because that's what he gets. Yeah, well, I tell you, I appreciate it. But it's honestly just the irresistible brute force of the actual revenue trend that is almost more. remarkable than the capitalization of it in the market cap. Because if, in fact, it's going to be half a trillion dollars in revenue in five or six quarters, we've never seen anything like that. It's moving so fast. They are collecting the free cash flow of the rest of the industry, and the market's happy with it. The market's fine with it. They have 50% margins on it. At some point, again, it's a source of instability at the top of the index if it keeps racing

and everything else is left behind. But for now, making it work through rotation. for being here, of course, to Mike Santoli as well. You obviously can hear the bell. We'll be red into these big earnings. Hasdaq's going to be green, though. That's C with Morgan and John now.