Some experts have raised concerns about the lack of breadth of this year's stock rally, which has been led mostly by massive gains in AI-related tech names.
together can help you make smarter decisions. voya. well planned. well invested. well protected. it s time now for business, and for that let s bring in cnbc s arabile gumede who is drumming along to a tune that perhaps only he can hear. he joins us live from london. it s a friday. you re allowed. stock futures are up this morning after the nasdaq and the s&p 500 index hit their highest levels in nine months. tell us what we should expect on wall street today. yeah, so the tune i was singing was it s a lovely day, but it s not necessarily the greatest day when one takes a look at the initial jobless claim numbers that came out yesterday, of course. but the market is certainly rejoicing on the back of the news there may even be some sort of resolution when it comes to that debt ceiling. that is anticipated to happen this weekend. so we saw the market move in
them through the opec countries wanting to cut production by 1.16 million barrels per day, the market has tried to move away from that a little bit. we did see oil counters move relatively higher across the board as today we see the market move in lock step in the sense of positivity all. the. we just teased it before the break google is making some seemingly surprising cuts to employee services. tell us about them and what prompted the move. yeah, so this is going to be very interesting, right? effectively google s most severe data cut or rather era of cost cutting, right, if one really takes a look at the letter the google finance chief posted as well to employees, a company wide e-mail what she shared, she spoke about 2008 and made note of 2008 twice in fact, really just saying, quote, just as we did in 2008 we ll be looking at
economic data. how is the market shaping up this morning? we saw the red on our screen a few minutes ago. yeah, so a little bit of red right now, but i wouldn t really take too much heed of that because we have seen the market move i green for the week. dow and s&p up 2%. the nasdaq perhaps beginning to pick up some speed as well a little bit later on. the tech has been the fairly interesting ones. but possibly is the quiet before the storm. you can see it is only just toward the negative when it comes to those futures. and it is really the quiet before the storm because, yes, we ve had this massive storm of earnings come out this week. and next week, will the federal reserve hike interest rates by 25 or 50 basis points. another interesting factor will be that core pc numbers are expected to come out negative
we re talking two years out. i don t think the market makes another high until 2023 for two consecutive years when we will were so bullish for so long from 2016 up to 2022. that s shocking for people even though we didn t make new highs this year. give me one reason to rally? charles: scott talked about a few things. he thinks it s over-donn. valuations have come down. businesses are making adjustments. so we ll go through this trough at the beginning of next year where earnings are dunn and then they pick back up. would the market move ahead at something like that? no. the fed will raise rates. they re going to keep up their pace. if anything, they ll overcorrect this time around. they know that they kept rates too long. everyone is cheering up and down the market rallied the last two weeks because they think the fed will raise 25 basis points or half. it s probably 75 and we ll sell off and have a dip in december and eek out a christmas rally towards the end of the year,