Dow and S&P 500 close at record highs
December 24, 2025 • 4m 16s
Leslie Picker (Reporter)
00:00.350
it
was
a
record
close
for
the
SP
today
making
its
thirty
ninth
of
the
year
and
the
major
averages
are
also
on
track
for
their
third
straight
year
of
gains
could
this
momentum
spill
over
into
the
new
year
or
are
there
risks
that
are
not
priced
in
yet
joining
me
now
is
patrick
Leslie Picker (Reporter)
00:15.030
rossetti
from
rose
advisors
at
hightower
patrick
frizzetti
thank
you
for
being
here
so
you
think
inflation
is
here
to
stay
for
the
next
couple
of
years
and
it's
not
exactly
priced
in
why
is
that
and
how
do
you
think
the
market
will
ultimately
react
Patrick Fruzzetti (Partner & Managing Director)
00:32.010
yeah
sure
thanks
for
having
me
leslie
so
twenty
twenty
five
was
a
good
year
for
risk
assets
the
question
is
how
long
can
it
last
you
know
equity
valuations
are
pretty
expensive
credit
spreads
are
tight
and
as
rick
mentioned
you
know
there's
still
some
uncertainty
over
the
labor
Patrick Fruzzetti (Partner & Managing Director)
00:47.470
market
you
know
no
higher
no
fire
and
i
i
say
inflation
is
not
priced
in
i
i
think
it's
going
to
be
very
hard
to
get
to
the
two
percent
target
and
it
really
comes
down
to
structural
globalization
and
protectionism
that
upward
pressure
on
inflation
will
outweigh
any
downward
Patrick Fruzzetti (Partner & Managing Director)
01:06.830
disinflation
disinflationary
pressure
that
perhaps
things
like
AI
may
provide
in
the
near
future
Leslie Picker (Reporter)
01:12.710
so
do
you
think
the
key
read
through
for
the
markets
there
is
maybe
you
won't
get
as
many
rate
cuts
as
you're
currently
counting
on
and
therefore
you
know
it
will
kind
of
reassess
the
cost
of
capital
there
or
do
you
think
it's
the
inflation
picture
is
so
risky
that
you
could
Leslie Picker (Reporter)
01:28.350
even
see
a
rate
hike
in
twenty
twenty
six
Patrick Fruzzetti (Partner & Managing Director)
01:31.110
i
don't
think
we'll
get
a
rate
hike
but
i
would
just
say
with
the
underlying
environment
it
makes
it
challenging
to
cut
rates
and
if
they
do
it
means
we
may
have
a
steeper
yield
curve
because
i
don't
see
the
long
end
of
the
curve
going
down
and
i
actually
think
the
long
end
of
Patrick Fruzzetti (Partner & Managing Director)
01:45.550
the
curve
could
ultimately
go
up
in
in
you
know
if
we
do
have
those
unexpected
inflationary
numbers
come
forth
you
know
at
some
point
in
twenty
twenty
six
Leslie Picker (Reporter)
01:54.710
all
right
and
another
key
theme
that
obviously
everyone
's
talking
about
talking
about
this
year
expected
to
continue
talking
about
next
year
is
the
AI
theme
what
do
you
think
the
market
needs
to
see
in
twenty
twenty
six
if
this
year
was
the
story
about
efficiencies
and
and
Leslie Picker (Reporter)
02:10.190
seeing
some
sort
of
ROI
on
all
of
the
investment
what
do
you
think
the
market
needs
to
see
in
twenty
twenty
six
in
order
to
further
generate
upside
in
some
of
these
trades
Patrick Fruzzetti (Partner & Managing Director)
02:20.550
yeah
so
the
market
rewarded
all
of
this
AI
capex
spend
in
twenty
twenty
five
right
and
we
all
know
look
CEO
's
love
to
spend
so
they
had
no
problem
if
they
thought
it
was
going
to
increase
their
share
price
of
course
they
they
could
put
that
money
to
work
and
i
think
as
we
move
Patrick Fruzzetti (Partner & Managing Director)
02:33.830
forward
twenty
six
and
twenty
seven
i
think
the
market
's
going
to
look
to
see
what
the
return
that
investment
is
going
to
be
eventually
and
i
think
that
that's
what
the
market
is
going
to
look
for
and
it's
become
more
competitive
right
so
as
with
the
increased
capec
spend
we
Patrick Fruzzetti (Partner & Managing Director)
02:47.190
know
we're
going
to
see
competitive
you
know
dollar
we're
going
to
see
additional
dollars
spent
worldwide
look
at
a
place
like
china
they're
clearly
going
to
spend
on
AI
and
in
the
old
adages
you
know
when
china
walks
into
the
room
profits
walk
out
so
i
think
it's
it's
going
to
Patrick Fruzzetti (Partner & Managing Director)
03:04.670
be
it's
going
to
put
pressure
on
the
return
paradigm
as
to
AI
capex
spend
Leslie Picker (Reporter)
03:09.790
yeah
steve
kovac
did
a
great
story
yesterday
about
the
commoditization
of
some
of
these
models
and
that
theme
for
twenty
twenty
six
outside
of
AI
though
you
like
healthcare
for
twenty
twenty
six
that's
been
a
pretty
beaten
down
sector
until
recently
why
why
do
you
think
it's
Leslie Picker (Reporter)
03:24.470
poised
to
prosper
next
year
Patrick Fruzzetti (Partner & Managing Director)
03:26.710
so
two
reasons
we're
in
a
midterm
election
year
and
if
we
look
at
the
eleven
of
the
last
twelve
or
thirteen
midterm
election
cycles
we've
seen
healthcare
outperform
so
that's
one
reason
i'd
also
say
you
know
we
talk
about
a
i
capex
spend
you
know
with
healthcare
and
particularly
Patrick Fruzzetti (Partner & Managing Director)
03:41.950
pharmaceuticals
i
think
they're
ultimately
going
to
benefit
think
about
this
sector
you
know
a
lot
of
these
companies
have
relatively
speaking
low
and
you
know
they're
going
to
benefit
from
you
know
the
development
development
and
optimization
of
drug
discovery
as
they
use
you
Patrick Fruzzetti (Partner & Managing Director)
03:56.670
know
things
like
a
i
so
i
think
that
that's
going
to
improve
that
sector
but
most
importantly
it's
just
a
relative
ball
game
and
i
think
going
into
next
year
they're
undervalued
i
think
as
we
go
through
the
year
maybe
we
have
some
increased
volatility
being
a
midterm
election
Patrick Fruzzetti (Partner & Managing Director)
04:10.670
year
they'll
they'll
they
would
be
a
good
allocation
in
any
portfolio
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