FUELING CHAOS: Bond market TRIGGERS investor anxiety

Added: 2026-05-18

[00:00:00]I'm afraid we have to show you the market because there's a ton of red ink out there and it's just as bad as it was a half hour ago.

[00:00:05]The Dow's off 400 and Nasdaq's down 434.

[00:00:08]Kenny Polcari with me now. All right.

[00:00:11]Why are we seeing this sell-off this morning? Are we getting to the point where we are exhausted with AI?

[00:00:18]I think it's a combination. Yes, I think the straight the trade got stretched. I think there is some exhaustion.

[00:00:25]Yesterday felt a little bit giddy. Look at what happened with that service yesterday. It was priced at 185. It opened at three and change, traded up to 380 and closed at 360. That felt to me, I hate to say it, a little dot-commish.

[00:00:37]You remember how those stocks used to trade then. That doesn't mean that the AI trade is dead or that it's over. It just means that I think it got giddy and it got ahead of itself. Combine that with the economic data which has been screaming slow down because the inflation is heating up. And now this morning, look what happened. The bond market should have reacted like this on Wednesday when you got the hot PPI report, but in fact it got delayed until it got delayed until today. I think it's I think it's going to test certainly Kevin Warsh considering his first day as his work is on Monday. And so they're going to hit him over the head right as he's coming walking in the door trying to test him. I'm not at all concerned with this pullback. I think it's actually healthy. I'd like us to shake the branches a little bit more and see who falls out so that long-term investors like you and me can jump in and buy stocks at cheaper prices.

[00:01:23]>> Well, Bill Ackman's hedge fund pushing Square. They took the position in Microsoft. He says Microsoft has a highly compelling valuation.

[00:01:33]You know, with a lot of people on this program have said, "Yeah, Microsoft has got to bounce. It's got to be well above $400." But it doesn't happen.

[00:01:40]When's it going to happen?

[00:01:43]It's up $7 today. It's trading at 416.

[00:01:45]It's up nearly 2%. I You You know me, like you, I love Microsoft. I think that Microsoft, you know, it's a big It's a big stock, right? It's a mega cap name.

[00:01:55]It's not going to move the way, you know, that some of these other stocks do, but I think it's a core long-term hold and uh and I like the name and I'm and I'm happy I'm in it and I'm sure you are as well. I am as a matter of fact, you know, I'm not selling. All right, Kenny Polcari, [laughter] you have a great weekend. Cook up some good food and we'll see you next week.

[00:02:12]So thing. You too. Bye-bye.