>> the bloomberg markets. i am not married. depending -- fueling the s&p and nasdaq higher right now. the dow jones lacks those tech stocks. 4142 as strategist lived their

outlook for the full year. think of america saying 4300 the end of 2023. the gloom seems to be floating away. nasdaq up 2.5% right now. pushing the 14,000 level. we have the 10 year yield rising. the edges 79 is the level there. outside of tech, talks remain a priority. katie greifeld is here to walk us through what part of the story we should be focused on in this set up. katie: the aaa rating. if we go back to 2011, you had s&p downgrade. he did have them come out and

say it is on watch. it is what we are seeing over the debt ceiling talks. it is preventing a resolution and you can see that negative outlook. looking at some of the bill yields that encompass the date in early june, you can see all of those bright colors and you can see the yield really skyrocket. we have a maturing on the 30th. a huge divide has opened up in the market as investors coming into the yields are demanding a higher premium as we count down. matt: maybe not on june 1 or june 6. we will -- we heard from a former director who says even

with a deal, big issues still remain. >> regardless of what deal is struck, the fundamental problem is in the large spending programs. there is room to raise more revenue. that is off the table. honestly, until we slow the growth rate, the project will not pick up. matt: deadlock with fitzpatrick. jack, i'm expecting kevin mccarthy has, now -- come out and spoken again, but i do not think we will get a deal until sunday night at the earliest because washington has to wait to do something.

>> it is some information about a deal earlier than that. republicans are pressuring their leadership to give them a full 72 hours to read a bill before they vote. there has to be a little bit more of a runway to make sure. they seem to be banking on the senate acting quick, so we are still on pins and needles, wondering if there will be a summary of a handshake deal that they would then turn into a bill. they cannot wait as close to the deadline, save for government funding, when they know when the deadline is because of the confusion about when the date is. we are on the lookout for some information about the deal, understanding that there would be more events, letting them look at it before they set up

votes. >> we have heard that issues still remain in the debt talks and not all will be happy. what are some of the big sticking points at this hour? >> they are talking about spending cuts. how many years that applies, how many cuts they have to find a year one and what the rate of growth is, it is a foundational disagreement. there will not be in agreement until all of that is that old. another issue that is difficult is the work -- work requirements issue. he does not want to make stricter work requirements for those relying on health care, so it seems like he is trying to take the medicare ram and soft the table.

exactly how strict work requirements are written and what they applied to, that has been a challenge. there are conversations about checking other things onto it. that can be fairly bipartisan. how many different measures and bills are included? that is not settled. the big things are spending cuts and caps, and work romans. those seem to be the toughest issues. matt: jack will be burning the midnight oil, waiting for a deal. the head of u.s. rates strategy joins us to talk about market reaction. what are you doing to prepare for the possibility of a default?

>> i cannot believe we are here again. while yet here, let's do this. for market participants, this is more of a risk judgment issue than a trading opportunity. i think there are a lot of concerns about what could happen to liquidity and market functioning. to be clear, i put the likelihood of seeing a delay on payment as very low, but this is what i think is a low probability, high risk event. he does not matter because the risk contained is so huge that people are forced to deal with these issues. matt: we could get something earlier than 72 hours before the date. it is june 1.

what are your expectations? is there a betting pool? what is the most likely? >> it is very hard. my first job at the fed was recasting, so i do have some history with this. when i look at the numbers, it is very difficult because we are hovering at this level. if we see two to three days of heavy cash outflows from treasury, it could be june 1 or june 2. if you can delay those, maybe we can get june 15. you get to june 30 and we might be all the way out. it is just a very uncertain forecasting environment. we had to take her at her word. they need to be sure that they

are ready for that >> you know how difficult it is to forecast cash balances. from the investor perspective, how should investors -- how seriously should they be putting these on right now? >> the likelihood that we see a delay is very low. the likelihood that we get a deal is starting to look a little more hairy. even if we do not get the full deal, i expect they will use these measures to make sure that they prioritize. there is a delay in the checks that go out. but if we do not see the delay on treasury securities, a lot of these bad outcomes do not actually come to pass.

that is why i think the probability is very low. there is room to make good on these payments. most investors in treasury securities should not see any disruptions. as we have seen this morning, we had positive headline and we saw treasuries respond. i think there is a psychological piece to it aside from -- plexus talk about that hypothetical land. some have called free large rise as they work to fulfill cash buffers. what would that mean in this perspective?

>> that is a massive glut. we have well over 2 trillion. that is money that could ideals. it could fund corporate's and domestic many accounts that could absorb that kind of supply. we have had this massive imbalance, so in a way, this is almost fixing that. we would see movement and price action. matt: are you taking monday off? >> i am. i'm going to see the city with my brother. matt: so -- >> i have joked with clients before. kind of the same way i look at

the season. i do not care until the last week. same with the negotiations. there is going to be back and noise. i'm going to hold out any popping of the champagne bottle until we have this coming across the president's desk. >> when did we go from talking about a pause to a skip? >> we have seen hawkish comments from fed speakers, but i do think lori logan in particular is relatively new to the fed as a fed president. there is this assumption that she is more dovish. it implies that there will be hiking later on. that is what market. hearing them talk about needing

more hikes was not really surprising, but hearing her changing minds, we are not quite done yet. >> hasn't the debt ceiling debate tightened up financial conditions? >> it has. we have this overhang still laying on markets. i think the way most participants are interpreting this is that it could mean more cuts coming. when we have seen these debt limit headlines look like nothing is coming together, we see them pricing in more cuts. that is the way they have been keeping a cap is with this debt limit overhang.

>> i'm looking at my screen. we are hoping to get you back after the holiday. i can already see capital market . i'm looking at headlines right now. to be in merger talks with ng. it has spurred stocks higher. bungee shares are back up. said to be in talks about a deal. >> steve bannon will go on trial next may. the new york state supreme justice presiding over the criminal case against donald trump related to hush-money payments. facing conspiracy charges.

in south carolina today, signing a bill banning almost all abortions at a round six weeks of pregnancy. the law goes into effect immediately and the republican governor says he stands ready to defend legislation against any challenges. the uk's says a record number of migrants arrived last year. an increase of 118,000. the prime minister is under pressure to deliver a promise to drive down those numbers. this is bloomberg. -- global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am john hyland and this is bloomberg. ♪

>> this is bloomberg markets. first we went to get some breaking news on illumina. we have been talking about this proxy battle for weeks. his moves and now we know that

illumina shareholders have elected a nominee to the board. we will continue to bring you headlines as they cross the board. everyone is dealing with the rising cost of capital and uncertainty created by the debt ceiling. a difficult job for a ceo, but especially that of a startup. a consumer biotech company has developed a home test, helping people determine their biological ages and helping them live healthy and long lives. let's talk about what it is like being a startup now. rates are higher than what we have seen them in a decade. uncertainty in this situation, how do you do with it as a ceo? >> there is a lot of uncertainty around the market and how that will affect fundraising.

there is a ton of capital still being deployed in the market. if you have a good company, a sound purpose and mission, i think there is a great opportunity. some celebrities also participated in the funding. people who are really focused on longevity. john larson -- john legend and chrissy teigen, peter kraska all just to name a few. there is incredible curiosity around longevity right now. the amount of money actually being deployed in longevity is actually quite high. 2022 was a record year. about $6 million deployed just into companies.

i think there is a lot of hope for fundraising raised on the market. >> there is so much technology aimed at health care right now. longevity is such a big issue as people get older. what is the tech that you are focused on and the peace that you are looking to develop? >> there have been incredible breakthroughs in on jeopardy science. our cofounder, he and his team at harvard recently published a paper showing the loss of genetic information, the loss of that information leads to cellular dysfunction and accelerated aging. the mice used in the study actually became more youthful. it basically supports this idea that even if you have aged cells in the body that may have acquired a genetic mutation,

that restoration could be enough to rejuvenate the body. this is no longer science-fiction. this is real science and it is happening now. consumers can tap into those takeaways and make adjustments in their lives. that is what we are doing here. we created that takes about 15 seconds. we analyzed were dna and provide you personalized recommendations for how you can lower your biological age. matt: how interested deified consumers right now? you have a bunch of big-name celebrities involved and you have this product are people buying it? >> they are. we have been launching it for about three months and we have thousands of members on our platform. we announced a waitlist.

there is incredible consumer interest. the key is not only being able to provide a measuring tool, but you cannot manage what you cannot measure. we are also providing personal recommendations. what will affect you is different than what will affect mine. people want to know where they stand as a baseline and what they can do to improve. matt: we will have to check back with you later once you have made more progress. still ahead, as we see this rally in tech stocks, strategists are looking for signs for the second half of the year. this is bloomberg. ♪

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i and matt miller. stock market strategists expected equities to go nowhere in 2023 and are changing thereto. raising strategist raised her year end price target to 4300 from 4000. she had expected us to drop low where we are now and she expects us to gain more than 100 points. here you can see the s&p. there we go. the average target right now still at 4017, but as more estimates pour in, we could see those move higher. this would mean that we need to see a default.

coming up, david sachs will talk to us about tech, ai and politics after hosting a roundtable announcing the presidential campaign for desantis. this is bloomberg. hi, i'm lauren, i lost 67 pounds

in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy, and you're not tired anymore, and your anxiety, everything is gone. it's definitely worth trying. it is an amazing product. jon: welcome to our audience,

this is bloomberg markets. matt: let's get a quick check on what's going on in markets now. we have tech stocks rally after nvidia knocked the cover off the ball with earnings after the bell. the s&p 500 and the nasdaq are both up in the s&p gaining about 0.9%. the nasdaq is up 2.5%.

we see the dow falling as it doesn't have any big tech stocks or not enough to push it higher. we see yields continuing to rise and that should provide a headwind to stocks as well with 379 on the tenure as oil falls. jon: very interesting there, it seems like some investors are testing the comments from the saudi energy minister in the last few days so energy stocks under pressure. financial stocks are not having the best day. in canada, we fed earnings season last couple of days with td down and they tried to buy first horizon. the deal did not get to the finish line. that has complicated the outlook for the company and the economic story impacting its profit picture. dollar tree is the worst performer of the s&p 500 right now is some of their consumers are trading down that's hurting margins plus they have other expenses and snowflake is not

having a great day on its outlook tied to the cloud demand. those shares are down a whopping 15%. nvidia with a rocking day on the road for just two potential trillion dollar market cap and shares her up more than 26%. matt: truly an amazing move at nvidia. 26% is no big deal for a little biotech but this is a company that was trading for 700 billion plus dollars yesterday. it has now got a market cap of $958 billion, a massive move. elsewhere in tech come we saw the presidential announcement of ron desantis on twitter. he and elon musk was be set by technical glitches and audio problems. one of the biggest gatherings in twitter spaces possibly and here's what must set afterwards. >> sorry, i'm doing this from

the david sex twitter account because we broke the twitter system. jon: elon musk has been friends with david sex for many years. -- david sachs for many years. thank you for your time. maybe you can walk us through how this twitter event came together in the first place. >> good question, i think the dissent's campaign was interested in doing something a little different and they connected with elong and twitter and we organized this twitter space to do the announcement. after some initial technical glitches, it went off perfectly. if your viewers go to twitter now and listen to the recording, they will wonder what the fuss was about. once we got started on my account, it worked out

perfectly, the audio was perfect and the governors really articulate. he was substantive in addressing his policies. jon: did that inspire you to think about doing more of these events, especially as we roll into more coverage tied to the presidential campaign? >> absolutely, elon musk said that this was not just a unique event, any major presidential candidate could come onto the system. twitter wants to be an open platform for a 10 -- a town hall for candidates to use in the idea is when you are in a twitter space, it's not just like a broadcast media we've got one person broadcasting too many. it's many to many. you got all of these users in a room together and anyone can be called on or anyone in theory can ask a question. it feels much more intimate and authentic than what you would normally get through attritional media or some sort of traditional appearance by a

politician. i think that came through in the room. it really has a different feeling than what candidates have done the past. elon musk said anyone can do it. matt: it seems like it was more intimate. if he had done the sun network, he would've gotten millions of viewers and you had four or 500,000 people tuned into the twitter space? >> synchronously but in addition, the recording instantly went viral. as of last night, we were up to 6.5 billion views in one twitter space. there were multiple twitter spaces that were forking off the one on my account and people were listening to my twitter space and there also having commentary in their own twitter space. they had their own guests. you could have many appearances and you could choose your own commentators. people were doing interesting things with the functionality.

the recording is into the many millions, bigger than anything you could get through attritional media. matt: one of the most interesting things about twitter when it started is that you had so many diverse viewpoints coming together. people disagreeing on things, sometimes in a friendly way and sometimes not but nonetheless, it was out there. this seemed to have been a launch that was tailored for the candidate. he didn't have anyone not backing him asking questions. there is no critical discussion. isn't that missing from this kind of thing? >> no, we tried to ask him some fastballs. i asked him about the fight with disney and the naacp travel advisor for the state and what about the book fans, so-called and we game the chance to answer those questions so we pitched and what you would say were tough questions.

the reality is, we only had one hour and you cannot open the thing up to the entire world. realistically, there will be some hecklers. there has to be some control exercise but we were able to pull in a bunch of people to ask questions and we've invited the candidate back to do another town hall and we will keep experimenting with the format to come up with more and more questions and more people to participate. matt: one of the main issues of this selection has got to be the right to choose. women's health care and abortion -- this is something on which ron desantis seems out of step with the majority of the american people and it was a question he was not asked. how will that play out in the selection? >> i think it's important issue and he will have to speak to that. we couldn't cover every single issue in this town hall.

we covered many issues and it felt like we were scratching the surface. other people complained that we did not discuss the economy enough. we discussed a lot of different things we wanted to give the candidate a chance to present his vision at the top of the twitter space because he deserves a chance to tell us what his candidacy is about. you are right, we didn't get to that issue i think there will be other opportunities for the candidate to address that. jon: one of the other things is the fact this is no longer a public company but still very much talked about is it's hard to know what's happening with the business day to day. did you get any feedback from advertisers on this format and how that might factor in to have these things get tailored in the future? >> i did have that conversation but i can tell you that the number of eyeballs on this thing and are still on it today are unprecedented. this is the worldwide conversation right now. it's really quite extraordinary

that because we started 15 minutes late and we had so much interest in the room, this somehow has become the worldwide story and attritional media is trying to portray this as a disaster. people didn't like the car after the horse and buggy either. they are hysterical about this because they don't like the idea they are being replaced and there is another way for candidates to speak readily to the people. the really don't like that and they're trying to make this out to be something it wasn't. once we got started, the audio was perfect and i would urge all of your viewers to go listen to it. it's going viral on twitter right now. i have never seen anything like this before. jon: against that backdrop for those who have a suggestion that the twitter audience has been getting smaller, what can you tell us about the user based my how active it is beyond this particular event area >> it's a not getting smaller. user base is getting bigger and

the intention and number of minutes is getting bigger. i would also say the cultural influence of twitter is getting bigger. this is what everybody's talking about today including us. twitter is only more important or more relevant today than ever before. a big part of the reason is if you look at the platform, you on musk has launched a lot of functionality0 since he took over. the development on the platform has increased and he has opened it up to be more of a free-speech platform. they are not putting their thumb on the scale of the debate the way they were before and therefore the debate is more vigorous and it's more interesting. i think twitter is more important and relevant than ever before. matt: it's been great having you on the program. cofounder david sacks talking to us about the twitter spaces. coming up, where the chips industry goes from here after the nvidia rise, we will hear from htc president dan o'brien

on the product they make that may need to use these chips. this is bloomberg. ♪

jon:nvidia's market value now approaching $1 trillion after a blockbuster quarter. ai programmers need massive computing power for the applications and the nvidia chips provide that. the stock has been fueled by this ai frenzy. we got confirmation that the sales picture is improving rapidly. now the stock is up more than 160% this year. matt: and confirmation that it

really is strongly related to ai. i heard yesterday from an analyst that 65% of all the server application chips they sell are used in generative ai or deep learning. i have a look at the market cap. it's an unbelievable move from what was yesterday a $750 trillion stock to now quickly approaching $1 trillion. the growth this year has been amazing from just about 350 billion to $100 trillion. 2023 has been the year of nvidia and it's the only play that people really think about when it comes to ai. jon: we have had these big themes, ai now and metaverse before. we have curiosity around hardware like headsets are playing a role in unleashing

this technology. joining us for more is dan o'brien from htc. you guys have to develop hardware that is going to feed into what people actually want whether it's the consumer or the business case. what is really driving activity right now? >> we see tremendous growth with enterprise business use cases, we are seeing massive growth in health care in the public sector , automotive and aerospace, architecture and engineering construction. you name it, we are seeing massive growth and great opportunities with different companies to provide value with headsets and technology. matt: this is technology that we are expecting to see from apple later this year. facebook change their name to meta in order to prepare us but we haven't really gotten it. it's also a very -- a varied

landscape. it's not just one imaginary metaverse out there for everybody. there are many different ways to use it so tell us how htc approaches it. >> our brand stands for innovationnd we work in the health-care space we theater ane hospital at nyu training brain surgeons and how to prepare for surgery. we also work in health care and restorative care with companies like panumbra. we are trying to use this technology to bring value. we also work with companies in construction like bell helicopter and redesigning helicopters and taking six months to design a prototype instead of six years. these are highly efficient products. in the health care space, we see 29% faster in getting through surgeries, four hundred percent

faster in confidence level in your content. these surgeons are making upwards of six times less errors in the surgical room so this is better outcomes for patients across the board and for these brands involved. jon: there are many companies that see hardware opportunities and apple is one of them. in terms of apple being a player in this market, does that hurt or help? >> i think it will be tremendously helpful to the industry to have more brands come in. apple has been a rival for htc for many years. we look forward to their entrance into the market may think they will bring a very compelling product and they will have to look at that professional space as well and look at how they can bring value to other companies where there is in training and simulation or design. they will have to look at very much the same way we do. matt: what are you seeing in

terms of actual sales numbers? what are the figures from htc in terms of how many people or companies are buying your hardware? >> for the last several years, in terms of growing our business, the enterprise and professional space is over 60% of the revenue for htc. these are vastly growing areas with over 80% growth year on year. for us in terms of growing the business into the billion dollar range, that is very much a reality for us in the next coming year. jon: you mentioned a few different industries, longer-term, which is the biggest industry use case for this kind of technology checkup >> right now, we see health care is the most beneficial, not only for the surgical training and the training of health care workers and them more efficient

but an actual product that can be used in the health care space for therapeutics and for recovery. that is where we are seeing some of the fastest growth. we will see a large number of financial institutions starting to use this product in the next year. they will use it for meetings, collaboration, keynotes, you name it. they will use these products on a regular basis. we are replicating much of the smartphone business and how that -- how we grew that business. i worked on the original android phone and i worked on the first 4g lt advice -- devices and i watch that growth and how it took up in the early days was all enterprise. then we brought it into the home for the consumer application. it was all business that really drove the innovation and adoption and the use cases made it valuable for users. it's not just another

entertainment device. matt: the key to the success of the hardware you sell is the software others build like developers. one of the most -- who are the most important developers you work with on this? >> we work with a couple of thousand developers but surgical theater is a key partner. we work with a lot of different variety of different developers. a lot of the game developers have left the gaming industry internetworking with exxon mobil , working with the telcos, working in the different spaces, lows interactive in terms of creating different solutions. we are actually seeing a lot of the gaming and entertainment space come back to the professional space. matt: great having you on the program, thank you for joining us. coming up, we will stay with the ai hype that is helping fuel

today stock rally and we will look next at c3aa which has seen its stocks or but some are betting on a fall. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh

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jon: this is bloomberg arkin. -- bloomberg markets. we are looking at performance for the s&p 500 not too far off its best levels of the day, up 0.9%. technology and the nasdaq have been even stronger with nvidia leading the way higher. c3ai is one of the best performing tech stocks with a huge rally of about 140% year to date and the company has benefited but many are criticizing it for chasing trends and internal problems.

you've done some extensive reporting under the hood so we should start by saying the company was not always known as having ai in the name. >> that's right, it was founded back in 2009 on the idea of tracking emissions than it said we should do iot internet of things and then it said we are an ai company. it had an ipo in 2020 and the bear case is a good number of these gains might be because of that ticker, the ai. they didn't do generative ai until recently. we have heard from a lot of people about the company's history that they have some ai products but this may be a case of investors conflating different types of ai and technology. matt: i remember when crypto first broke out in 2013. anybody with blockchain in their name was a successful company

short-term on the stock market. what about short-sellers in this story? we got some amazing data from s3. what can you see in terms of who is shorting the stock? >> we've had some high-profile short-sellers come out with serious customer content just concentration in accounting issues, problems with management. a lot of companies i look at, you will have a co-founder or ceo the calls all the shots. this company takes it to a new level. i hear from people that work over there that the ceo has to review contract language, marketing language, everything must go through him. others have come out on the concept of what the company has done as well as the way being managed. matt: we have little time left so i will say thank you. we have to talk more about this and we will get you back on.

it went fast today but there is so much going on. it all wraps around ai after we got the nvidia release yesterday. jon: and we are looking at that now. this is bloomberg. ♪

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♪ >> ai, an ambitious forecast from one of the most ambitious tech companies tracking the ambitious goals for artificial intelligence. kicking you off to the close here on this thursday afternoon. our eyes on the biggest rally in about a month for the nasdaq 100. the biggest rally in 6.5 years for nvidia. that is the bright spot. upward revision for

first-quarterg