Tech Rout, SpaceX & Google Strike Cloud Deal, More
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Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.
And I'm Caroline Hepke in London. We're the hosts of the Bloomberg Daybreak Europe podcast.
We're up early every weekday, keeping an eye on what's happening across Europe and around the world.
We do it early so the news is fresh, not recycled, and so you know what actually matters as the day gets going.
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And from London, I'm looking at what all that means for markets, money and the wider economy.
We've got reporters across Europe and around the globe feeding in as stories break.
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You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris on Apple, Spotify, YouTube or wherever you get your podcasts.
News when you want it with Bloomberg News Now. I'm Ed Kalecki. After nine weeks of gains, Wall Street's rally screeched to a halt. The story from Bloomberg's Charlie Pellett.
It was a brutal end of the trading week with a 2.6% drop Friday for the S&P 500 index, bringing its losses for the week to 2.6%. Stocks were hit by a tech sell-off and higher bond yields as that solid jobs report added to bets that the Fed's next rate move will be a hike. The SOX, the Philadelphia Stock Exchange Semiconductor Index, plunged 10.3%. For the week, the Dow was down 0.3%. The NASDAQ 100 Index on the week was down 4.5%. In New York, Charlie Pellett, Bloomberg Radio.
Goldman Sachs partner John Flood joined Bloomberg News. He says it's a very healthy market right now and there have been few dips to buy so far this year. So when you have a 2% sell off in the S&P 500, it has paid to buy those dips. He also adds that he thinks there will be a rate hike by the end of the year.
It's a very healthy market right now in terms of the supply and demand that's out there in the marketplace. And I think that we've seen, you know, I speak with institutions at Goldman Sachs, institutional investors, and there's never been more robust demand for these offerings. And my expectation is that continues. And that's a major piece of why we are very constructive. This equity market Despite S&P 500 already making 24 all-time highs, we expect more of that to come in the future.
John Flood of Goldman Sachs. Alphabet's Google has agreed to pay Elon Musk's SpaceX $920 million a month for computing power as part of a cloud services deal that runs through mid-2029. It seconds such agreement with an AI competitor in a matter of weeks. Google will pay SpaceX the monthly fee from October this year through June 2029. That amounts to about $30 billion through the time of the agreement. If SpaceX fails to deliver access to Nvidia chips as part of the deal by September 30th, Google has the right to terminate the contract with a one-month grace period. President Trump has expressed interest in the U.S. government holding equity stakes in leading artificial intelligence developers, saying that he planned to discuss the idea of a partnership with AI companies' executives as soon as next week.
There are concepts where pieces could be given to the American public, where the American public essentially becomes a partner with the companies. And I will tell you, yeah, I have spoken to all of them.
The president offered no specifics on those conversations. Goldman Sachs chief executive officer has asked his top lawyer to stay at the firm, a surprising move after she resigned from her role earlier this year as scrutiny mounted over her interactions with Jeffrey Epstein. In recent weeks, CEO David Solomon pressed the bank's general counsel, Kathy Rumler, to remain, and she's agreed to stay on as an advisor, this according to people familiar with knowledge of the matter. Solomon has been steadfast in his support for Rumler, and has privately maintained he did not think she did anything wrong or inappropriate.
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