Squawk on the Street SOTS 2nd Hour: 2025's Charts of the Year, Tech/Retail Playbooks, & AI Headlines to Know 12/30/25
Dec 30, 2025
Dan Greenhouse, Chief Market Strategist at Solus Alternative Asset Management, shares his insights on the bullish case for stocks, driven by AI spending and consumer resilience. The discussion also delves into SoftBank's massive $40 billion commitment to OpenAI and what it means for the tech landscape. They explore Meta's recent acquisition aimed at enhancing AI agents and highlight Guggenheim's unexpected retail picks for 2026, while examining the impacts of holiday return trends on retailers and the innovative role of AI in restaurants.
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Three Rate Cuts Shaped Market Sentiment
- The Fed cut rates three times in 2025, prioritizing the jobs market amid continued inflation concerns.
- Rate cuts supported markets but left ambiguity about future inflation risks and policy direction.
Remain Allocated To AI But Watch Rotation
- Stay exposed to AI themes as long as capital spending and demand outpace supply, since adoption is still early.
- Watch allocation shifts and consider rotating into healthcare, financials, or materials if large AI names become overconcentrated.
Valuations Don’t Cancel AI's Momentum
- High valuations persist but do not reliably time short-term returns; earnings growth and AI adoption remain the market's primary drivers.
- Rotation into other sectors has already begun, reducing single-theme risk despite lofty multiples.