Microsoft Can't Afford Its Own AI. What Does That Tell Us? + Easterly's Darrell Crate on Structural Volatility

Guy Adami and Dan Nathan discuss an S&P 500 pressing all-time highs amid sticky inflation, a 10-year yield around the mid-4% range, and low near-term volatility despite an upcoming Fed meeting and PCE data. They review mixed retail signals (strength at higher-end brands versus Walmart’s margin pressure and a strained lower-end consumer), debate the market’s resilience, and focus on AI: Nvidia’s explosive growth and concerns that soaring usage-based AI costs could challenge the “sanctity” of big-tech CapEx, alongside critiques of Meta layoffs and skepticism about SaaS firms overpromising AI. Guy then interviews Darrell Crate of Easterly, who outlines structural volatility, demographic-driven retirement needs, and hedged equity demand, argues small caps benefit from innovation, and describes Easterly Government Properties as a mission-critical government-lease REIT with an 8% dividend, no canceled leases, a $1.5B pipeline, and potential tailwinds from government efficiency initiatives and GSA changes.

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