Good Monday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Kenting

me on David Faber, live as always from post-9 of the New York Stock Exchange. Stocks are rebounding

this morning after Friday's big sell-off. With chips getting an early boost, we'll talk about the

names leading the comeback here and whether the worst is behind us. Plus, the SpaceX

XPO just a few days away, but the company likely already having a noticeable impact on the entire

market, including factoring into Friday's tech wreck. We'll explain how. And a second case of

screw worm has been identified in Texas, leading Canada, to restrict some livestock imports from the U.S.,

we'll talk to the CEO of Zohattis, which makes a drug to treat and prevent the parasite.

Thank goodness. But guys, let's start with the changing market thinking around what's going to

happen with the Fed. We got that really strong jobs report on Friday, and already

the trend had been in place that cuts were being pushed out farther and farther away, and it was

looking less likely, and that hikes are getting more priced in. So here's where we sit this morning.

This is what has changed. There is a more than 65% odds now that the Fed will hike raids in December. Actually,

on Friday, Fed Funds futures at one point showed a more than 90% probability that the Federal

Reserve would be hiking interest rates. Also, I thought it was notable that Goldman Sachs came out

over the weekend and got rid of their rate cut forecast. Here is the quote from the note that people are buzzing

about today. We are pushing the final two rate cuts in our Fed forecast back to June and December of

2007. Labor market has been stronger. We now expect unemployment rate to rise only a touch further

to 4.4, not enough to create a sense of urgency to lower rates. As a result, we think the most natural

path for the Fed is to delay further cuts until the effects of the tariff. The war and AI demand

have faded and core PCE inflation nears 2%. Someone that does not agree with this market pricing

and still wants rate cuts is President Trump. He talked about it in an interview this weekend with NBC. Listen.

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