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So, what does this divergence between economic data market action tell us about investor sentiment? I want to bring in uh Cal-Bell Capital Management president and Fox News contributor Gary Kaltbaum. Gary, it really is amazing when you see an inflation report like we got today, uh you know, triple-digit losses before the market opens.
Here we are once again looking at record closes for the S&P and the Nasdaq. Your reaction. Couple of things that are very important. Uh I know we've been saying that, "Oh, the market's shrugging off." But it really isn't. Uh you know, the market is 200 sectors, uh a bunch of subsectors. And I got to tell you this, while the semiconductors and the artificial intelligence trade are continuing to go pretty much vertical, I can tell you uh mining the new yearly lows are a ton of consumer names, including like a Home Depot, the retail, the housing-related, the travel-related, the auto-related, and things like that.
So, there's a definitely a a a major two-way tape going on here. And leave no doubt that is everything to do with elevated prices in many area, of course, uh oil. And now we have to watch very closely the 10-year yield. To me, I don't care what kind of inflation number comes out. If the 10-year yield stays down, I don't think the Fed has to hike rates.
But if the 10-year yield, we start seeing it at 4 and 3/4 or 5, then maybe they're going to or at least forced to. And that I think can be trouble for the markets. But right now, uh we are big-time lift-off in everything semiconductors, artificial intelligence, uh data storage, memory, and all that.
And frankly, I haven't seen moves like this. I have to go back to 1999. Not saying it's going to be a 2000, uh but it is it's stunning to see. Well, when you have some analysts and experts coming on to Fox Business and saying this AI trade, there is no end in sight right now. I think that that is very meaningful.
I mean, this is an infrastructure story that we've many of us have never seen in our lifetime, Gary K. But, I want to pivot back to Warshauer for a second and kind of that macro story because so the Senate voted it was 54 to 45. Senator John Fetterman of Pennsylvania was the sole Democrat to say yes.
Kirsten Gillibrand was not there. She was absent. But again, you know, this is what Jerome Powell is leaving for Kevin Warsh, this inflation story. The Wall Street Journal has a great editorial piece about this this morning and it says, "The inflation legacy for Kevin Warsh." And they say, "The veteran may be wondering why he ever signed up for this duty." The consumer inflation data for April, he's inheriting one of the most difficult monetary tasks since Paul Volcker took over from G.
William Miller back in 1979. Jared, I'm not hearing you great, but I heard Paul Volcker, Powell, and Kevin Warsh. All I can tell you, I hope he does a great job. I hope he never prints any money. I hope he pays attention. If inflation picks up, don't listen to a certain someone who says we should take rates down to zero.
Just remember, J. Powell almost destroyed everything with his printing to $9 trillion. We're still feeling that effect in the housing market right now where J. Powell took rates down to a half percent, 10-year yield where people got mortgages under 3%. It skyrocketed the housing prices, made it unaffordable, and nobody wanted to sell a house because of how low mortgages were.
And guess what's happening now? Inventory picking up, fantasy lands coming down, and and we're getting like it's we're stuffed right now in the housing market all because of J. Powell. So, I'm wish Mr. Warsh well. I hope he's an inflation fighter, and most importantly, doesn't have to do too much. Just remember, the economy is not the Fed even though J.
Powell thought so. Uh the economy is 150 million of us going to work every day uh trying to do better for ourselves and our families. That's what drives the bus. And if he just, you know, stays back, kicks back every now and then, uh moves rates a quarter here, quarter there, I think we'll be in great shape going forward.
Well, I had Fed Governor Stephen Myron out with me uh last week, and he, of course, as you know, was a main dissenter uh when the board met. There is dissent. There is a lot of uh differing opinions about the future uh story for rates, but that's up to Kevin Warsh to to wrangle in. Gary Kaltbaum, thank you so much for being with me, Gary Kaltbaum, on all of these markets. Just to let you all know what's going on here overseas.
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