Big Tech earnings have been mixed as investors weigh hefty artificial intelligence (AI) spending from the likes of Microsoft (MSFT), Meta (META), Amazon (AMZN), and others, with the ultimate payoff of investing in the tech. BMO Wealth Management CIO Yung-Yu Ma joins Seana Smith and Brad Smith on Morning Brief to check in on the top stories moving the market, including third quarter earnings, the US election, and the Federal Reserve meeting. "The reaction is really keying off of is just the very high amount of spending that’s going into AI and the very uncertain payoffs and far-out potential payoffs that would be coming from those from the mega-cap tech companies that have such a large weighting in the index … It makes sense that the market isn’t going to get enthusiastic about that," Ma tells the Morning Brief team. He notes, "We do think 2025 is going to be a healthy year for earnings growth. We actually think that what’s going to drive earnings growth in 2025 is business spending broadly. And part of that is certainly AI and what goes into it [like] data centers, upgrades to the electricity grid, other infrastructure that will drive spending, technology spending." Watch the video above for more insights from the strategist on his 2025 market outlook, Nvidia (NVDA) joining the Dow Jones Industrial Average (^DJI), uncertainty about the upcoming US presidential election and Federal Reserve meeting, and more.
#stockmarket #AI #stocks
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