Paul Tudor Jones on the AI Bubble Debate (FULL)

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Tudor Investment Corporation's Paul Tudor Jones tells Bloomberg's Matthew Miller that if AI is a bubble, it's a historically small one. He sees concentration risk everywhere and expects to find the NASDAQ substantially higher by the end of the year. Billionaire Paul Tudor Jones expects the Nasdaq Composite Index to climb higher by the end of the year as traders anticipate lower interest rates ahead.   If the big technology companies report positive earnings and US-China trade conflicts are resolved by the end of October, “then you have a chance for a real ramp in the last two months,” said Jones, 71, in an interview with Bloomberg Television on Tuesday.  The technology-heavy Nasdaq has climbed almost 17% this year, pushed higher by exuberance over AI.  Jones, who founded the roughly $16 billion macro hedge fund Tudor Investment Corp., also said he expects that the Federal Reserve’s benchmark rate will be around 2.5% by this time next year.   Last month the US Federal Reserve lowered the benchmark interest rate by a quarter of a percentage point, to a range of 4% to 4.25%, its first cut of the year. Minutes from the Federal Open Market Committee meeting showed that officials expect two more quarter-point rate cuts by the end of the year.  The main risk that Jones sees is concentration.  “I see concentration risk everywhere I look,” he said, noting that individual investors have the highest equity allocation they’ve ever had, roughly 35% of the S&P 500 Index is driven by seven stocks and decision making in Washington is dominated by President Donald Trump. Jones’ Robin Hood Foundation, which fights poverty in New York City, will host its annual investor conference tomorrow.  -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake