Karen Moscow

Matthew Weir, Goldman Sachs Managing Director, joins us now.

It's really interesting because for a very long time,

we were zeroed in on capital expenditures, and that was the be all and the end all.

There are stories on the Bloomberg Terminal today about the credit profile and CDS, for example, on Oracle.

Are investors starting to look deeper and at different data sets to assess the health of what's going on?

You have a very clear line, which is the primary determinant in equity markets and equity prices is earnings.

100%.

Absolutely.

We just had an astonishingly detailed earnings print from Oracle.

Yes.

What did you learn about the world from it?

Interesting, because you've sort of been talking about the tech sector not being in a bubble, Matthew, talking about how valuations are relatively reasonable and certainly Oracle's come down some in terms of its own PE ratios.

But talk to us a little bit about the anxiety in the software part of the business.

And Oracle spoke and pushed back against that.

Have you pushed back against that more broadly?

There was a lot of anxiety in the market initially about software.

And then, look, there was the geopolitical risk that we're now combating day in, day out for a 12-state straight day over with the Middle East and conflict with Iran.

Matthew, does that change in any way your perspective on investing into this moment in where you are in the market?

Every day trying to understand the long-term impact of AI on inflation and labor markets.

And I know the Goldman House call is that AI may displace a million jobs a year.