Stocks Extend Record Run, Busy Day for the Fed, Vertiv's David Cote Talks AI 9/23/25

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Market insight and analysis. You're listening to the opening bell of CNBC Squawk on the Street.

Carl Quintanilla (1:07)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Courtney Reagan, Mike Santoli here at Post 9 of the New York Stock Exchange. Cramer and Faber have the morning off. Future is pretty solid here coming off the 28th S&P record high on Monday of the year. It's a packed morning of speeches by Fed officials and by world leaders of the UN General Assembly, including the president later this morning, 10 year 413 Our roadmap begins with NVIDIA though, and OpenAI's $100 billion mega deal, which did spark a tech rally and sent major averages to record highs yesterday.

Courtney Reagan (1:37)

Plus Fed Chair Powell getting ready to speak about the economy for the first time since cutting rates. It comes amid divergent views from other policy makers about the path of rates. And chairs of Kenview rebounding on early trading following yesterday's sharp drop after President Trump made controversial comments linking Tylenol and Autism.

Carl Quintanilla (1:56)

Let's begin with the markets extending the record run fueled by NVIDIA, of course, and the tech trade yesterday. A lot of desk notes, guys, over the past 24 hours looking at the creativity in financing and layers and layers of contracts and what this means for sort of NVIDIA's business model and the overall AI trade.

Michael Santoli (2:12)

Investors are confused to what degree they need to get kind of messy with the details of this, I think. I mean, because there are obvious questions. Is it just kind of a vendor financing thing? Is there enough power for this? All those things are out there. But the risk in the AI trade up to this point has been overthinking it, right? And overthinking it meant, well, is there, are we going to result in over capacity? Aren't we where we need to be in terms of this phase? Don't we think we have to diversify the winners, you know, find other ones that haven't worked yet?

So I think that process of questioning is still underway. Yesterday showed it's really hard to fight it. If you go back to the last three weeks, Oracle's revenue guidance, even last week, the Nvidia Intel deal, which everybody said, probably not that big a thing, the stocks ripped on it. And so all of a sudden, it's just dangerous to push against it. Beyond that, I do think that you have to start paying attention to whether this is the trade that's eating the whole market because, you know, it's been this really orderly grind higher in the S&P 500 Everyone loves the backdrop of the Fed getting dovish into a good economy, but you wonder when we've used that up, I think, on a broad basis.

Courtney Reagan (3:22)

Does this make us want to refocus, though, on the tech trade? You're talking about the S&P 500 grinding up nicely, 28 record closes. But the focus is again, all back on tech, all back on AI. Are we going to lose the broadening that we were hoping for?

Michael Santoli (3:36)

I don't know if we lose it. I think we're going to be, you're kind of getting the benefits of the good environment at different rates, depending on what part of the market you look at. Look, there are parts of consumer and industrial that have been punished for either tariff exposure or the fact that their consumer is not doing well or something else. I do think that when it comes to the tech trade, it's responsible for a lot of the bullish talking points, such as earnings for the third quarter are not even being revised down as they normally are, margins are holding up, like all that stuff is really just downstream of the dominant tech companies still are earning the way they're earning.