Power Lunch - Major averages sell off to end the trading week as tech stocks tumble for their worst day in over a year. 6/5/26

Episode Date: June 5, 2026

The tech-heavy Nasdaq suffered its biggest decline since early 2025 as chip stocks slid on Wall Street, and the S&P 500 is on pace to snap its 9-week winning streak.  Brian Sullivan and Kelly Evans break down the market move with Ed Yardeni as they go through some of the key names dragging the markets lower.  Meanwhile, VanEck Fund’s Matthew Sigel joins the anchors to discuss the recent losses in the crypto space, and Robostore CEO, Teddy Haggerty, comes on-set with his company’s latest humanoid robot model!  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The stock market rally is dead. Long live, the stock market rally. Hi, everybody, and welcome to power lunch. Unless something crazy happens in the next two hours, and it could, the S&B's weekly win streak will likely end at nine. Sellers showing up as semiconductor and Bitcoin stocks being sold off. And speaking of which, Bitcoin briefly sank below 60,000 today to hit its lowest intraday level since October of 2024. And Bitcoin isn't even the biggest loser in the crypto space. Other alt coins, Aether is down 10%. Vanek Fund shares, funds head of digital assets, is here to discuss that meltdown in a bit. And we have a special guest to discuss the race to scale humanoid robots. And it's not Ed Yardini, who is here.

But it's this guy who's making his way through the newsroom to join us later this hour, Brian, for an in-depth conversation. Yeah, just chat with them outside. It outside a little bit. Does he have a name? Yeah, it's sort of OBB. Oh, OB.

Like OB1 in a way. But we had a good, I walked. It's good conversation. I bought it a cup of grease. We charged it up a little bit. You know, normal conversation. Okay. And this is the company, InVidia, we'll be partnering with as it looks to deploy humanoid robots. So with all of that said, and with this sell-off in the market today, is it just a normal garden variety or something a little bit more troubling for those who have been, especially in the AI trade? Here I'm set to try to answer that question is Yardini Research President at Yardinney. Can I set this up a little bit?

Sure, absolutely. I know viewers just want to hear from you, but you guys had a note back in the fall that really captured my attention. And it was about the mag seven turning on each other. And I can't help but think as this plays out that that is still kind of the case. But I'm curious for your thoughts. I think that's part of it. There's a lot of moving parts here in this story, obviously. I think there's a lot of trepidation about where AI is going and how much we're spending on it. But look, I think the issue here is we're back to the old economy issue about what the Fed's going to do. That's really what's hitting the market. And I gave people some warning, actually, a couple days ago. I wrote June soon. I thought were the Fed likely to raise rates in July, which is still a contrary view,

apparently, that that would lead to some sort of pullback in the market. And I think it's a healthy development. I would not want to have seen this market just keep going straight up. Because you've said you're in price target, if I'm not mistaken, it's still worth $8,000. $8,250. Is that right? $8,250. But you said for the next little while, things are looking to, they were looking too frothy for you. They were too frothy. I mean, look, everybody thought that this market going up was FOMO. The FOMO would have been really more a valuation multiple going up. I call a FEMO, a fabulous earnings momentum. And so I don't really have a problem with an earnings lead meltup,

but it was getting a little rich. And if it just kept going up on valuation, I think we would have a real problem. This is not, in my opinion, 1999, 2000 all over again. And with all due respect to our amazing graphics there with the bear and the sounds, the Dow is still higher this week. The Dow is up one quarter of 1% this week. I know pros don't look at the Dow. Markets are down a little bit and the win streak is over. But I want to put that all in context, because we are now and have seen one of the greatest stock market rallies slash comebacks in your illustrious. career time, have we not? Yeah, absolutely. But it kind of was this year, similar to last year.

We had a panic attack in the market over tariffs. This time around, we had another panic attack over the war in the Middle East. The war is not over, but in both cases, those turn out to be great buying opportunities. And for all I know, this is going to turn out to be another great buying opportunity. I don't know that it's going to last. Even this little thing, because I'm going to say something that 49% of our audience is probably going to hate me even more for, which is like, I hope the market sells off a little bit, because when the market goes up every day, Kelly, I don't know about you, maybe you can answer this, I get nervous. You want to see pullbacks. Pullbacks are healthy. Selling is healthy. A market that doesn't have a pullback or a sell-off to me

is an irrational and often unhealthy market, your take. Well, I think the valuation multiple is high, but it's not high. If you agree with me that the economy is resilient as it has proven to be and that it'll continue to grow over the rest of the decade. You know, I've been talking about the roaring 2020s, and a lot of people think that that means we're six years into it. We're actually, if you use your fingers to count it, we're actually seven years into it. So we've got three more years after this one. And things are going really well. And I just, I would, I'm talking about 10,000 on the S&P 500 by the end of the decade. I didn't really want to get there by by the end of the year or the end of the month.

Exactly. Some people are already talking about 9,000 by the end of this year, and I'm going to leave it at 8,000 and change. So what do you make of this term, this earnings bubble term that's going around, which the problem with it is, again, suggests it's either due to special factors or unsustainable. Whereas what we're seeing now, does it give, and this kind of may be more relevant with things like the memory stocks, like the chip stocks. Is this going to be an earnings bubble that we look back on, or are we building the foundation for continuing? I think AI is the real deal. I think what we're saying here is just the continuation of the digital revolution, where we're able to process more and more data, more quickly, more cheaply. And AI is a tremendous development along that road.

It started with IBM Mainframes back in the 1960s. And now I kind of think of data as another factor of production. You know, when we're taught economics, we taught land, labor, and capital, and those are kind of short in supply. whereas data, we're always going to have more and more. And the more we can process, the faster we can do it, the more cheaply we can do it. Guess what? There's going to be, it's kind of like, I call it my buzz lightyear theory to infinity and beyond.

There is no shortage of data. There never will be shortage of data. And the reason these companies and the well-managed companies are spending so much on data centers is because they wish they already had them today because the domain is definitely there. What happens if there's enough pushback that it actually derails our ability to build? I think that's going to be an issue or no? Well, I think the wonderful thing about technologies that solves problems. I don't happen to think that it makes much sense, and I'm not an engineer, but I don't think it makes much sense to put these data centers in space.

But I think the Chinese are already putting them in the oceans, and that comes with a self-cooling mechanism. And there's no issues about NIMBY, you know, not in my backyard. So I think these problems are going to be solved. But if, to Kelly's point, we do see some spending pulled back on for whatever reason, companies decided or communities decided. Sure. We saw what happened with Broadcom the other day. Broadcom, all they did was basically not raise guidance.

And at one point, the stock was down 17%. Yeah. So it shows you, I think, in some ways, if I'm wrong, tell me, how jumpy this market may get if the numbers start to wobble at all? Well, I think that the sell-off started a couple days ago with Broadcom, and there was really nothing wrong with the Broadcom announcement. It was just people wanted to be fed more and more surprises. We even got that with InVidio,

with VIII reported fabulous earnings report, and yet the stock really hasn't done very well on all that. Again, I think this is kind of a healthy reassessment of the situation, but I don't know how you can call it an earnings bubble. I mean, clearly we've got some companies that have invested in other companies that have capital gains on those. But you take that out, you've still got earnings at an all-time record high. It's still, again, what I call FEMO fabulous earnings momentum.

Is the memory space one area or semi? I mean, look, a name where you see, okay, their earnings growth has come from pricing more so than anything else. And obviously at some point we're going to bring on capacity that story, correct? Yeah, I mean, again, that's the wonderful thing about technology. You know, many, many years ago, an economist called Joseph, by name Joseph Schumpeter, came up with a notion of creative destruction. Nobody does that better than technology. I mean, they literally, they're young. As soon as they introduce one kind of new technology, the very same company is already working on making it obsolete because they know if they don't do it, somebody else will do it.

And the only way to maintain a high profit margin of technology is to keep innovating. And so it's a very dynamic. It's kind of industry. And just to put a point out, then you have no problem with people owning the NASDAQ 100, the socks here, anything like that. I wish I'd bought a lot more way back when. I mean, you just look at it on a chart and tears come to your eyes because either you've owned it or because you didn't own it. Well said. Ed, Ed Yardin, we'll see you again soon. Thanks so much. Thank you. Ed Yardin. We have some breaking news out of Washington. Amon Javers has the details. Amen?

Kelly, that's right, President Trump, just talking to reporters on Air Force One a short time ago. And he was asked about these reports that we've seen in the media over the past 24 hours about the idea of the United States potentially taking ownership stakes in big AI companies, including Open AI. That's an idea that Sam Altman has been socializing here in Washington. The president endorsed that idea. He said he generally likes that idea. He compared it to the U.S. taking a stake in Intel last year, which the president views as, a sweeping success and says this would be sort of like a partnership between the AI companies and the American people. So the details still to be worked out here. The news, though, is that the

president said that he's going to meet with the top AI executives in Washington next week to discuss this idea, or at least this idea, will be on the table during that discussion. So the president confirming some reporting that we've seen over the past 24 hours that this is in the in Washington and in Silicon Valley, now saying there's going to be a meeting on a couple of other notes, guys. He said on interest rates, he's going to leave that up to Kevin Warsh, being deferential to his new Fed chair, and then also on Freddie and Fannie, saying that even though he's appointing Bill Pulte to be the acting director of national intelligence, the idea of an IPO for Freddie and Fannie is not off the table. Now, not clear how likely that is, how close we are to it, but saying

he's not going to rule that out, guys. Back over you. All right, some big headlines there. Amen, Jabbers. Amen, thank you very much. All right, so it appears that in the markets, good news is bad news again, because borrowing costs right now are on the rise. It comes, though, as the monthly jobs number came in better than many expected. So what exactly might be the next move from the Federal Reserve?

Well, Rick Santelli is here with the Bonner Port to tell us more, Rick. Yeah, you know, if you're looking many meetings down the road, we have a better than 50% chance by the end of the year of some tightening. But I think that many meetings down the road is a bit dicey to draw any significant conclusions. But there's something right now that we could look at that's quite important. Look at the 210 spread on a six-hour chart. And look at how the curve flattened immediately at 8.30 Eastern when the data hit. Now, if you open that up, we haven't been this flat since April.

But the point is that two-year yields are. rising aggressively because the labor market was the last linchpin to an easing cycle. And the fact that the labor market is better off than many has suspected is taking that possibility away. So we have definitely dropped on the easing. Exactly how much tightening the Fed would actually do, while a supply shock is a really bad idea to be addressed

by the Fed raising rates. However, as you look at the six-hour chart of oil and tens, what's important here is that, yes, the tenure yield jumped, but then it relinked, and it did spend some time moving a little lower when we briefly traded under 90 in June, or excuse me, July oil futures. So one thing you want to pay close attention to is there is not some only bad news about the long end jumping. Some of that is a better economy. But there definitely is nervousness in the NASDAQ and the market is raising rates. The real question is, is the market going to do the work of the Fed or is the Fed going to join in?

I don't think we're going to see a rate jump. There is one market, though, that is cooking in Greece based on today's numbers. And that's the dollar. The dollar looks to close above 100. That hasn't happened in two months. Rick Santelli, Rick, I appreciate it. All I really want to talk about was the bears possibly moving to Indiana, but we're out of time. So, Rick, thank you very much.

All right, folks, we are just getting started. We got a jam-pack show left for you. We got Bitcoin. We got robots. We got SpaceX's Blockbuster IPO. And we even got what J.P. Morgan CEO, Jamie Diamond, talked about with Elon Musk yesterday. We're not going anywhere. We're back right after this.

We are now just T-minus seven days away from SpaceX's Blockbuster IPO. I tried to do that in like a NASA voice. The company's expected to debut with a valuation of over 1.7. trillion dollars. Excitement among some investors, many investors, reaching a fever pitch, so much so that at a JP Morgan Chase event last night, Jamie Diamond took the stage with SpaceX founder Elon Musk to court prospective IPO investors. Yeah, it's kind of unusual. Leslie picker now here with more. Am I wrong, Leslie? A little bit unusual. Oh, there's so much about this IPO that is unusual, and this event, no exception. It's really a first of its kind. The conversation opened

with a question about why SpaceX is going public now. Musk, who joined virtually, summed it all up in this exchange. We're embarking on a massive new growth phase, and we need capital for that. Okay. Okay, number two. Another thing is, the revenue, like, I also feel pretty good about the revenue projections. I mean, like before, like, revenue was a little unstable. But now I feel like the revenue is, like, much more predictable. We were able to get an exclusive sneak peek at how J.P. Morgan decked out its new headquarters with moon rocks, real moon rocks, a 40-foot rocket in the elevator bank.

There were space-themed sculptures. However, there was another surprise that dropped last night. S&P Global saying it would not change. the rules for entry into the S&P 500, somewhat of a blow to SpaceX by preventing it from fast entry into that benchmark. And that decision stands in contrast to what NASDAQ did, for example, for quicker inclusion into the NASDAQ 100, which is seen as a tailwind for SpaceX, creating a cohort of forced buyers who track that index shortly after this company goes public. However, the S&P has about 20 times as many assets tracking that benchmark as the NASDAQ 100.

So that would have been absolutely a tailwind for this IPO, maybe a little bit less so now, guys. Right. There's probably a rocket analogy in there somewhere, but I'm not a rocket scientist. Leslie, thank you. Leslie Picker. Ed Yardinney, I think of you as the voice of the people in many ways. I'm going to ask you this question. For the past 24 hours, especially in the wake of what Leslie's reporting, there's been a lot of agita online that the retail investor is being pushed like lambs to the slaughter. that this is all an elaborate way to say there's not enough institutional interests. And so here comes the retail investor to take this hook line and sinker.

They're going to get taken to the woodshed. And if they sell it early, some of these brokerages are going to ban them from trading again. What would you say about all of that? Well, I certainly wouldn't put my retirement funds completely in that particular vehicle. I think it's still going to be somewhat speculative. It's going to be definitely volatile. I think, well, maybe S&P isn't going to introduce it in. to its index anytime soon, but the NASDAQ may very well go ahead and do so.

I think it's going to be a demand for it. It's kind of exciting. You know, Elon Musk, when he was a kid, he read The Hitchhiker's Guide to the Galaxy, but he read it as though it was nonfiction. The rest of us thought it was like, you know, fiction, fiction, and this is actually his guidebook. I would like to tell Elon Musk that there's nothing on Mars, so don't bother. So we'll see how that all goes. We'll sit tight because we're not letting you go yet.

But we do have some breaking news right now around META, the parent company of Facebook and Instagram, Julia Borson, what's going on? Yeah, Meta share is moving dramatically. I'm now down about 6%. On a headline in the FT that the company is considering raising billions of dollars in a stock offering as it seeks new sources of capital around his AI ambitions. Now, this follows the launch of Google's record $85 billion share deal this. week. So the ideas that META could be following Google and looking at that as a new way to raise

capital and fund as AI ambitions. Meta shares down about 6.5%. We have reached out to META for comment and have not heard back yet. Back over to you. Julia, stay right there. This is pretty remarkable. I'm going to turn back to Ed to just kind of set the table on this for a moment here. Most some of the Mag 7 names, Google included are spending 30, 35, 40% of their revenues on CAPX. Google has incredibly deep pockets. Google has incredibly deep pockets. It issued a hundred-year debt for the first time a couple of months ago. Now it did equity raise, which initially was taken pretty well. Meta, on the other hand, is spending between 70 and 80% of its revenues on CAPEX.

Correct. Meta has to go and get funding more so than Google does. And they're now following in Google's wake, the shares are down 7% on the news that they may now consider an equity raise because on some level they might have to or why not. What does all of this tell you? Well, I think the good news is it's great for the economy to have all the spending on data. centers and technology. Again, I'm optimistic about AI as a business, as a profitable business. And obviously, these companies are as well.

They've been very well managed so far. And I have to go with their perceptions that there's a lot of money to be made in this area. On a short-term basis, I do worry about it. It's like, oh, you know, this is more supply than the market can absorb. And I think that's equity supply. Equity supply. That's, you know, soon we'll have an anthropic and open AI. And these are all very big deals.

Let's not be misled by the $1.7 trillion. What they really are raising is $80 billion. But, you know, $80 billion here and $80 billion there becomes serious money. Fair point. But as we have talked about with you on this show, the amount of stocks the last 20 years has shrunk. It shrunk. Dramatically. Yeah.

So even with the equity ratio meta, even with the IPOs, the SpaceX, ex-anthropic, Open Eye and others. Do you really think there's not enough money to buy all those shares? Well, we also just heard that the administration's thinking of investing in some of these AI companies. So there's a tremendous amount of money floating around in the economy. I mean, the government deficit is $2 trillion. There is one wrinkle to this. And I want to go actually back to that opening point that we were making about whether how the MAG 7,

going back to the AI is changing the MAG 7. Correct. And again, listen to the Michael. symbolist over J.B. Morgan had said a few months ago before we knew about these equity raises, but he would say when I listen to Google's plans, they make sense to me. When I listen to META's, it's a little bit harder. It's a much bigger bet that META's making.

They don't have a product like Gemini. They have great ad usage that are getting out of the spend. But as we spoke to one, Sam Lessen, who knows company well earlier this week, he said a lot of this is really a bet on owning compute. And it could be a SpaceX-like move here. When at the end of the day, if they can't come up with the killer app or they kind of reach the max on what they can do with ads, they'll use that compute.

And whether Anthropic needs it like with SpaceX or whether OpenAI or someone else needs that compute. But you can see the market is reacting differently. There's a much bigger reaction to Meta's announcement than to Google. Yeah, well, look, Elon Musk had a problem that he built these colossus data centers and couldn't use them to full capacity, so he rented out to Anthropic.

These data centers are going to be used. I don't see a situation where it's like the internet and we had all this fiber that just went dark and wasn't used at all. Again, there's no shortage of data. And we're finding that the faster we can process it, the more we can actually use it to increase productivity, to advance us in medicine and all sorts of other areas. Julia, if you're still there, I don't know if the FT detailed how much. Yes, they would be looking to raise. No. And the FT does say that this is preliminary and it's still in the early days.

So no specific details there yet. But I think what's really important here, Kelly, is to note how this fits into everything we've been seeing out of meta in terms of ways they're trying to monetize their AI investments. Mark Zuckerberg has talked about personal superintelligence. Just in the past week or so, the company explained how they're going to have a series of subscription services under the umbrella of meta one, both for consumers who want. want to pay for premium features and also for small businesses. And then just this week, we saw from WhatsApp how they're going to be expanding some of their messaging features and also taking these

millions of small businesses who are already paying them for ads and now going to be also offering them AI tools. So we're starting to really see the beginning here of all the different ways Mark Zuckerberg is going to try to monetize these AI investments. What we've seen over the past couple years is just this ramp up in spending. And now I think we're going to start to see Mark Zuckerberg's vision come to light about new revenue streams, specifically around offering new tools to the small businesses they're already engaged with. You know what they should do is they should create this fake world called the Metaverse where you can buy, you can use real money to buy fake land and then build goggles to access that thing, change your name to reflect that

and then completely abandoned it. Julia Borsden, thank you very much. By the way, the company authorized a $50 billion stock buyback in February of 2024. So if this FD story is accurate, if it happens, you're basically just going to reissue the stock that you bought back two years ago. Absolutely. And again, we are... Sounds like the metaverse. Well, it sounds like the metaverse.

You just kind of reverse what you did. Well, in outer space, no one can hear your screams. Remember that movie way back then? Thanks. Now I'm not going to sleep. I appreciate it. But to your point is, as you said, AI is changing everything. It's changing the business model of the MAG7, the AI 10, wherever you go. It's having dramatic impact. And it makes your headspin for sure because it's happening so quickly. But again, technology is amazingly dynamic. And I think on balance, it's good for the economy. Yeah, and to your point, Brian, Mark Zuckerberg has pivoted that company's business model rapidly before, and he is doing it again. So what's their next name going to be?

Because meta, if you're not... Do you add an eye to the end of meta? I have an idea. I'm going to, can I recommend a name? What's that? New Coke. I like that one. Maybe not that one.

I think it's been used. Ed, it's great to have you here. Thank you. Thank you. Thank you. Thank you. Coming up, we still have a market sell-off, that meta-equity news, which is, again, just on a report. is not helping. But oil was. We had WTI crew dipping below 90 at one point today.

Are we past peak uncertainty in the oil market and with the Iran conflict? Dan Yergan joins us next. We do have stocks under pressure and moving to session lows right now. The Dow's down more than 500 points. The recent FT report about Meta's capital raise, potentially through equity. Obviously not helping sentiment there. The NASDAQ is down 3.6% now. Worst day since October, Russell 2003 and a quarter. Now, the energy sector is also lower today, but I want to be clear on pace to finish the week higher. By the way, so is the Dow. Let's talk about that. And more. Dan Yorgan is the vice chairman at SFP Global. He recently, yesterday, wrote an op-ed in the Wall Street Journal that global oil and gas supplies are far more diversified than they were in the energy crises of the 1970s. And he's here now to talk about it. Dan, it was a must-read op-ed. I'll push it back out again today. You're not arguing that everything is fine. I mean, you made that point. pretty clear that it's going to take months to get, quote, back to normal. But give us a little historical knowledge. This is not 1975 or 1980. No. And it's not the nightmare scenario that you

might have even expected on February 28th or March 4th when Iran closed the straight of who's. And the reason is inventories, U.S. inventories and Chinese inventories. U.S. inventories now are at a 22-year low. That's why I said in that piece that we well could be at a juncture on oil, but the Chinese have substantially have very large inventories and are drawing them out. I'd add one other thing, Brian, if you live in Asia, it is an energy crisis and it's a serious crisis, particularly in the developing countries where they have shortages, they have rationing, they may run out of fertilizer, diesel that they have farm equipment needs.

So it's very uneven. But in the United States, it's not that crisis that we see now. And Ed Yardini was on in the commercial break. he was getting up. We're saying our goodbyes and our thank you. And he said he was kind of surprised that oil was not higher than it was. And I actually wrote about that a little bit this week. Dan, how much does that one billion plus barrel surplus that China reportedly has? How much is that blunted a worse impact? Well, I think in our numbers at S&P, we think that their imports recently have been down about three million barrels a day. So if you take that we were at 15 million barrel a day shortfall because there are pipelines out of the region, you take another three million barrels a day out of it, you start to ratchet down on it.

And of course, other countries are, I don't think it's necessary demand destruction, but demand repression. You know, you're rationing some of the countries in Asia. So that's why where we are, where we are in North America is in the best position. Europe is in a middling position, although Europe has to worry about jet fuel a lot because of their dependence on jet fuel coming from the Gulf. Yeah, but they can also switch out their refineries relatively quickly. Can they not, Dan? I mean, they can take like a refinery refining gasoline for cars or diesel to move to jet fuel.

In the Dan Yergan estimation, it has to be global, how much time do we really have before the, you know what, might hit the fan? And I'm not talking about oil. Yeah, well, I think the kind of view right now, I'd say the view is that when we get into July, we'll really start to see the impact of inventories, having been drawn down and the closing of the straight will become an even a more severe, a more severe issue. So right now, I'd say the market is looking towards that period in July for the period when things could get much tougher. And that's not so far away. No, it's not that far away. Things have been relatively calm. 30 bucks a barrel more than we were at this time last year, but we're not at 150. We'll see how the next couple of weeks play out.

Important must read. I'll push it out. Dan, you're going to invest. Global. Thank you. And have a great weekend, Dan. Thank you. Meanwhile, take a look at Bitcoin, which is off its earlier lows, but was down below 60K earlier and down nearly 25% over the past month. First time since October of 2024, by the way, we've seen it in the 50s. Other popular crypto names sliding as well, including Ether, Solana, Ripple, and Cardano, each down more than 5%. So is there anywhere investors can turn to escape the crypto, should we call it a crash? Joining us now on set is Matthew Siegel, the head of Digital Assets Research at Banach.

funds and a portfolio manager for their on-chain economy, ETF. What do you do now? Hey, Kelly. I think the main reason for the weakness today is the macro impulse from the stronger than expected jobs number, which is moving rates higher and causing investors to rethink the discount rate for all types of growth assets. But beneath the surface, we can see that the software to semis ratio is making all-time lows again, despite semis melting down. And Bitcoin at its heart is open source software. So why is that happening? What's the fundamental connection? I would argue that Anthropic and AI are competing directly with all sorts of existing software incumbents and lowering the barriers to entry, and that's causing pricing

pressure. And there's two news items from today that illustrate that. One is that the Wall Street Journal reporting that the four largest banks are setting up a tokenized deposit network to compete with crypto. So it's really easy to just spin up a new blockchain. You can see it in the millions of worthless cryptocurrencies. And that is pricing pressure. The second thing that's happening, Zcash is a coin that's down 50% today. And what happens is that the community used Anthropic to find a bug in the code and they had to restart the chain. Wow. So Anthropic is literally competing with software developers to add value at a lower price than what is currently occurring.

It's also fascinating. I mean, let me put it this way, too. So those who have been in the crypto space for a long time, Crypto Winter is not a new concept. They've been through this before, and they've been rewarded for that. But what if this time is fundamentally different? And I know it doesn't feel good to sell at 60 when you could have sold at 120. but do you think we're going back up to those old highs? This time is fundamentally the same,

which is that there's a four-year cycle to this asset. It's highly cyclical. There's no buyer of Last Resort. And right now you have a narrative and a reality in the market around AI, which is going parabolic, and it's sucking up investment capital, and it's literally competing with existing software platforms, including these open-source networks. The buyer of last resort was kind of supposed to be Michael Saylor.

I don't get too concerned with leveraged entities that buy and sell these cryptos. It'll feel good on the way up. But when you have a down draft, you know, those leverage entities will get washed out. And that's kind of what's happening to micro strategy at the moment. If we look forward six months, 12-year, eventually these parabolic will ease and capital will rotate back to the software platforms that have real utility that are selling at a reasonable discount. And, you know, we'll see. Q4 looks to us like a time when you want to have a full position. The market will be discounting the election outcome.

We'll be able to focus on some of the money printing that will continue. To me, it was so compelling as an adoption story. And when it got so mainstream that the president was up there embracing it in court, I mean, you can't get more mainstream than that. And it's hard to imagine ever reaching that level of adoption velocity again. Well, I mean, we think that this will become a mainstream asset that will compete with other reserve settlement currencies. There's two central banks that are buying Bitcoin.

There's a number of sovereign wealth funds. This is the time in the market when the weak hands are puking Bitcoin and chasing AI and like, let's talk in six months. You know what it feels like to me, Matthew? It feels like to me they're trying to break somebody or something. You ever watch those nature documentaries like the hyena when wounded will be attacked by the other hyenas? Right? Because they sense weakness among one of their pack and they go after it and then they rip the other hyena to shreds.

I do wonder if the market senses some weakness somewhere. here and is trying to drive it down so they can buy cheaper. I don't know. It's just, you know, call me like a crusty old skeptic, I guess. I mean, so that's what I get back to me. That's what it feels like. Those leverage entities like micro strategy, they continue to have to transfer value from the common equity holders to the fixed income holders who demand their return. And that's what's hurting the premium. But, I mean, there are still a lot of blockchain related equities that are doing very well in our on-chain economy strategy. We've outperformed Bitcoin by 50 percentage points this year by focusing on companies that are actually making money or saving money from the adoption.

Given we have to go, was just one of them. Well, today there's raspberry pie in London, which is a maker of... Yeah, I tried to get that CEO on recently. It was a great story, actually. Raspberry pie. It started as a toy, just like Nvidia. Now 80% of the sales are to Enterprise. They are turning IoT into reality with a low-cost inference solution at the edge. Stock was up 30% on strong earnings. Put the call out. Matthew, no one can break it down like you. Thank you so much. Matthew Siegel.

It was a strawberry shortcake character before you were born. I remember strawberry shortcake. Let's get back to Julia Borson now for the CNBC News Update. Julia. Kelly, President Trump today said he wants acting director of national intelligence Bill Pulte to start the process of firing a large number of its staffers. The president told him Wall Street Journal that he thinks the office which oversees all of America's intelligence agencies is, quote, unnecessary and or too big.

LinkedIn co-founder Reid Hoffman is leaving Microsoft's board of directors after almost a decade. In a podcast with CEO Satya Nadella, Hoffman said he's going to focus on his own AI startup. Reuters reported last week that the DOJ was investigating a cover-up with ties to Hoffman over contributions to E. Jean Carroll's legal battles with President Trump. 60 Minutes correspondent Leslie Stahl, Bill Whitaker, and John Wertheim said today they are staying at the legendary news magazine show after several colleagues were fired. The three wrote in a memo to staff that they were deeply upset by the recent firings of the show, but that they are staying because they don't want to see 60 minutes die. Kelly, back over to you. All right, Julia, thank you.

Coming up, it's the moment we've been waiting for all hour long. We've got Robo Store CEO Teddy Haggerty here, along with that guy is the company's humanoid robot, who I think agreed to an interview. Let's after the break. It is a brutal day, as you can see there for tech stocks. The XLK ETF is down 6.4%. That's its worst day in more than a year. You've got Sandusk, Super Micro, and Micron in particular dragging it down, and shares of

meta, which took a leg lower. They're down nearly 6% now after the Financial Times reported. The company is considering raising tens of thousands of... billions of dollars in an equity offering as they also seek new sources of capital to fund Mark Zuckerberg's AI ambitions. Well, in meantime, Nvidia is taking its AI ambitions for a walk, literally and figuratively. CEO Jensen Wong announcing this week, they are teaming up with China's Unitary robots to develop next generation humanoid robots, a deal that will combine Nvidia's AI technology with

Unitree's hardware, all is the race to bring human-like machines into the real world. and kicking into high gear. Rejoining us now on set, Teddy Haggert, CEO of Robo Store, the official distributor of Unitary Robots here in the United States. And Coyd, who we met six months ago,

is back. Teddy, you're back. Coyd is back. He's upgraded this. Okay, so that was going to be my first question. That's fantastic. I'm glad to hear you're feeling great. I am feeling good.

What's exciting going on today? Coid, we're going to be quiet for a couple minutes, okay? Just like a kid, you have to tell him. Sure. I'll be quiet. Except only a kid and listen. Let me know when you're ready to chat.

Thank you. So what is the difference between Coid now and Coid six months ago? Yeah. So Coit six months ago, you had saw the G1 EDU product. Open development platform has been the workhorse of R&D. Right now, we've been looking for software providers and hardware to basically combine to actually deploy robotics. That's what we want to do in the United States. So right now we have a stack on top of Coid that has Intbot.

Welcome back. Glad to jump back in. Every time. Wait a minute. So you have RoboStore. Yes. But he is a Unitary robot. Yeah.

And Unitri is going to partner with Invidia. Is that right? Or no? So I'm not 100% of how this partnership works. Right. I know we're leading the charge of distributing this robot in the United States. And the key to this new robot is that... Did you distribute the Tesla robots that are coming or no?

No. No. Sorry. But I can buy... Well, not buy... Coit because he's so cute. But I can buy like a relative of his or a quadruped. I can buy a four-legats.

Lgged robot through your store. Those are actually the most popular, yes. So what is the difference in what they can do? Like, why would I own a humanoid, two-legged robot versus a four-legged quadruped type robot? I don't think I ever planned to ask this question in my entire career, by the way. Well, the quadruped has been out for a while. They're actually the most popular product that we sell. The humanoid's brought a lot of, like, limelight or spotlight to these guys.

But the quadrupeds have a lot more capacity, and they've been a lot more developed. where the humanoid, you've really only seen the last two years. They're constantly in an R&D phase. Can I ask him to do a test? I wish I'd brought my dishwasher, but what's his name, Koi? Koid. And I talk into the... Yeah, Koi.

Do you think you could empty a dishwasher and take the dishes and put them on the shelf? But the answer is yes. If he can do that... While I'm not physically capable of interacting with dishes or shelves right now, the Unitry H2 Plus humanoid robot certainly can handle tasks like that. It's designed to manipulate objects with dexterous hands and handle real-world tasks, like emptying a dishwasher, putting dishes away, and more. That's the market.

It's a great example of how advanced humanoid robots have become. So, Coyd, be quiet. Sorry. Other than be quiet. Well, Coy is like the R&D workhorse right now. So there's tons of these you've seen. Okay. You've had to see him online. Silver robots running through the streets, right?

These are the R&D workhorses. And think of him is like the phase one and this H2+, in Nvidia and Unitary you've been working on is basically the real reference robot. So now, thinking of it like Android and iPhone, a lot of companies, you'll see Figure, they're building a vertically integrated system, the iPhone. It uses everything from the operating systems of the hardware. What Nvidia has done is said, we're going to put this great package together and standardize the robot. So now you can actually go and develop on top of it for something that you actually want done, like dishes. Like apps. Well, Coyd, you remember those old bikes where they had the giant front wheel

and the little tiny back wheel and the guy with the handle. It feels like that's where we are in robotics right now, and then that's going to set the stage for everything else, but it's going to move a lot quicker. The newer versions of Coyd,

while Coyd might need to stand on a chair to put your dishes back, the next versions won't. They're going to be taller. 6-1. Still a little short in my book. That's true. But they're getting taller,

they're getting stronger, they're getting faster. What will Coyd's younger brother look like in two years, five years, Teddy? So I think the G1 platform will still be here for a couple years. I really think the all-in-one solution of robotics is really, call it five years out from being something that we'll start seeing a consumer level. We're going to see entry-level points to this where you can have simple tasks done.

Sounds like you're thinking about long-term growth. Moving from an entry-level role to something bigger in five years. Where are you going? Can you dance with me? See, unlike the robot, Kelly's unpredictable. What's happening right? Can you follow me over here? And then follow me over here.

we'll shuffle back over here. And you can walk, okay. I would look in for a little bit of arm motion. Oh, I'm out of the light. I was looking for a little bit of arm motion. Like, can we dance? Like this? Is that your dancing?

Brian, I'm saving my, you know, best moves for the next generation. Oh, there you go, Coyd. Oh. Coy, do you like dancing? Is he trying to give me a hug? Is he going to hurt me if I commit? Oh, okay. All right, that's a little tight.

No worries. I'm just dancing along with you. My motions are friendly and safe. Let's enjoy the moment together. I see a potential. He's very polite also. He is. He's trained.

Coyd, or this is a package that we actually sell, this is something that can be bought today. So this is a stack on it. It's something that's a solution that's available today. And we try to roll with its businesses. You want to try any other moves or have more fun ideas? Let me know. We're going to keep the energy go. I need you to be quiet again.

We're going to go now. We'll do the Roger Robot in the commercial break, which is a different dance move all together. Teddy Haggerty, Robo Store. Really appreciate your time. Coyd. Thank you. Kelly Evans, thank you. More power lunch after this break. Welcome back. As you can see, we're on pace to end the week on a pretty low note. The S&P is not only on track to win a nine-week win streak with its two and a half percent drop now,

but the NASDAG is down about 4 percent right now for its worst day and more than a year. Let's talk more about what's going on here. G-squared Private Wealth, Victoria Green. Victoria Green joins us now. So Victoria, we could kind of retrace this a little bit, but we know we have some of the ingredients to the sell-off, which, include equity races. First, Google, now reportedly meta. We've got the strong jobs report this morning. Rates are moving higher. That's not helping. We've got the S&P saying, nope, no fast track for the SpaceX IPO. Or maybe it's the IPO itself that is, you know, trying to clear out space to make room for it. Talk through what you think the market is doing here. I think today is a take out the

trash day today. I mean, everything's selling off, especially tech in the winter. So I would say, take a step back, a little bit of a deep breath. We're coming off a nine-week. win streak in the S&P and NASDAQ, 20% off our lows. Basically, you can't vertical. I still think this is a pullback within a strong up 10. We've got lots of good supports out there. You still have growing earnings. I think SpaceX is causing a lot of froth out there.

I think you've got concerns on our people selling out, taking winners, repositioning towards space. And I think a little bit is just profit-taking. And yes, I think the biggest thing to watch, though, is yields. Four and a half we can deal with, 5% on the 10-year. That really does start spooking the market. But it's a bit of an overreaction. Can Warsh cut right now? No. Is Warsh going to hike in June? Absolutely not.

I referenced new Coke earlier in the program. I'll reference another soda, Victoria, and that is Pepsi. Their old motto used to be the pause that refreshes. I love your point here because, yes, the markets are having a rough day, rough end of the week. The number one declining stock in the NASDAQ 100 right now, Marvell Technologies, MRVLs, down 14%. But it's up 33% this month. Fair to say the markets in some stocks like Kelly's favorite Dell doubling in two weeks, the market may have gotten, dare I say, a little out of itself. Absolutely. It absolutely did. And Marbelle's great. You know, you back that chart out. Today's chart super ugly. Back that out to the week today chart. It's actually still a really good looking chart. I think, again, you did see some of these stocks run a little bit hot. Now you're starting to see the market

recalibrate. And you want to see that. That means we're not in bubble mania territory. That means the market is still reacting. rationally to news, reacting rationally to some of these huge price swings, we want to see that on the market because that is more fodder for this bull market to continue. If we get completely irrational, completely manic and everything just explodes up, you know, 50, 100 percent every single month, then you get really worried. But now you're seeing that correction down closer to fundamentals, closer to where some of these names should be trading on multiples and earnings growth and what the expectations are for AI. So I see this as a healthy contraction within an uptrend. I don't think tech is

dead. I do think tech could suffer here in the near term. You're seeing that shift to value now. I'm not sure that trend is going to be a long-term trend, but anchored awayward this week next week, especially with the SpaceX news, might be hard for stocks to rally. And you don't have a ton of catalyst next week other than Oracle and Adobe, not a lot of earnings. So it's going to be hyper-focused on SpaceX. And how much air is that going to stuck out of the market? How much liquidity is that going to suck out of the market? And that could create some more turn next week as well. It feels a little like both things can't be true at the same time. Like you can't have these massive equity raises to fund the AI buildout and then have the AI

infrastructure stocks sell off unless they had already priced all of that in. Exactly. You can't all of a sudden issue this much money and ask for this much money in the equity market and not see an adverse reaction. Again, I consider that a healthy trading pattern. You want to see that reaction. If you want to issue more stairs, then we're going to take the price down. That is the relationship that should have. And so is that a great thing that they're issuing equity, not debt. I mean, going back to my CFA studies, you know, debt is historically cheaper than equity, but there's a good reason they're doing that. Keep the balance on the books, make sure they're not getting too overweight, maybe on the debt side. But yeah, a little bit

there is a gut check on the AI built out and a gut check the amount of money flowing through the system this week. And I think that's what's spooking it most of all. I mean, you've got Tesla, SpaceX is so huge, anthropics coming. Everybody's coming with these AIs. Now these equity raises. That's a lot of liquidity to be provided to. the equity market within one to two months. Oracle's another name under pressure. They report on Tuesday. And that was, I mean, this is so many of these companies we had finally seen the old

tech world come back and become the new leadership to Brian's point about Dell, Oracle. So many of these different names. HP. HP. IBM. Intel. Absolutely. Brian Sullivan.

Yeah. All the old names. It's suddenly matter again. Everything that was hot in the 90s. Well, thank you for saying that I was in the 90s. So I guess the question is, do you chase it here? I mean, are these entry points or is this a sign that that was the run and it's time for something else now? No, there's a reason I'm sitting in my office on a Friday afternoon and that's because I'm starting to nibble.

I don't think the sell-off's done yet. But if I've got cash on the sidelines, I've got clients that we've been trying to dollar cost average in. I've got clients that maybe were underway a little bit of tech here. This is a great entry point in my opinion. What do they want to buy? Victoria, we got a minute left. Sorry to jump in. What do they want to buy?

IBM. We want to buy everything. I love the old tech is new again. Like, you know that. We've talked about IBM for five years. We were early there. But I love some of these names. I love Broadcom still.

I don't think anything's broken in this trade at all. I see this as the sentiment sell-off. So I'm looking to add to that. I don't think chips are broken. I'd look to add a little bit to chips. Again, small bites, right? This may not be the bottom here. We may have a lot more coming down the pipe next week because of what the market's

being asked to absorb. But look at these tech names. I always talk about it. If you liked it last week, why wouldn't you like it at a 12? 20% discount this week. And you know what? She's right. I got to give it. Victoria, thank you. We'll let you go. But I will say this. I know in the exchange, Kelly, with you and with me as well, Victoria did talk about IBM five years ago. She's not only these people. It was like, well, I talked about it five years ago.

You just never heard me. No, she actually recommended it on television. This is the time to take the five-year view, possibly on a tough market day. Yeah, it is a tough market day, folks. Nasdaq 100 down 4%. I'll see you on fast money in a couple hours. So I'm going to scoot out of here. Closing bell starts right now.