The ADP National Employment Report saw private payroll growth slow in May, signaling a cooling labor market. State Street Global Advisors Chief Investment Strategist Michael Arone joins Morning Brief to break down what’s driving the market (^DJI,^GSPC, ^IXIC) amid sticky inflation.
Arone points to tech earnings as a major market catalyst while the economy cools. He believes that the momentum fueled by the AI boom can continue, calling semiconductors "the key ingredient to the global economy." Arone explains that if the economy gets the soft landing envisioned by the Fed, there will be a broadening of the market with greater participation in tech.
While the AI race is showing no signs of stopping anytime soon, Arone warns, "I think that we really need to move from possibilities of AI to the practical implications of AI." He believes Apple (AAPL) is going to be key to that equation, as it is relatively late to the AI game, yet looking to adopt the technology and get it on the market as soon as possible.
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