Wall Street Journal (October 16)
“It’s too soon to call what happened this week to artificial intelligence stocks a correction. Call it instead a reminder: Hype about new technologies is an inevitable human temptation, and sometimes it pays off, but eventually investors demand returns on capital.”
Tags: Artificial intelligence, Correction, Human temptation, Hype, Inevitable, Investors, Pays off, Reminder, Returns on capital, Stocks, Technologies
New York Times (October 15)
“Stock futures are down on Thursday as investors grapple with persistent inflation — and growing anxiety about the heavily indebted companies involved in the artificial intelligence buildout.”
Tags: Artificial intelligence. Buildout, Companies, Down, Grapple, Growing anxiety, Indebted, Investors, Persistent inflation, Stock futures
Barron’s (October 10)
“Record highs can be cause for trepidation when they’re being propelled by good vibes and happy feelings. But the start of earnings season should remind us that old-fashioned fundamentals are still driving this four-year-old bull market.” Nevertheless, “investors aren’t popping out the Dom Pérignon; actually, they seem to be on tenterhooks.”
Tags: Bull market, Dom Pérignon, Earnings season, Fundamentals, Happy feelings, Investors, Propelled, Record highs, Tenterhooks, Trepidation, Vibes
New York Times (September 8)
“Investors are bracing for more inflation data this week that could persuade the Fed to raise its benchmark lending rate for the first time in three years. That uncertainty is roiling the bond market, just as rising oil and copper prices (more on copper below) threaten to pinch households and businesses.”
Tags: Benchmark, Bond market, Bracing, Copper, Fed, Households, Inflation, Investors, Lending rate, Oil, Pinch, Prices, Raise, Rising, Roiling, Uncertainty
Wall Street Journal (September 2)
“The 10-year Treasury note ticked up to 4.8% on Tuesday amid a global bond selloff that sent yields on Japan’s 10-year to a three-decade high. The U.S. 30-year bond hit 5.28%, while the U.K.’s 30-year gilt rose to a 28-year high of 5.9%.” These “early murmurs” of the “bond vigilantes” are a welcome development. “They are sending a message to Washington and other Western nations to clean up their fiscal acts. Bond investors may be the only people who can force the politicians to pay attention. The real worry is if the politicians don’t listen.”
Tags: 10-year, 30-year, 4.8%, 5.28%, 5.9%, Bond selloff, Clean-up, Fiscal acts, Gilt, Global, Investors, Japan, Murmurs, Politicians, Treasury note, U.K., Vigilantes, Washington, Welcome, Yields
San Francisco Chronicle (August 22)
“This week rising bond yields forced the U.S. Treasury Department into an unusual intervention and raised the specter of higher borrowing costs putting the brakes on consumer spending, the lifeblood of the economy. It also sparked concerns that investors might finally be thinking twice about financing a seemingly endless flow of government borrowing.” The Treasury intervention could fail since it doesn’t address “the deeper forces pushing yields higher: federal debt above $40 trillion, persistent deficits, inflation concerns and heavy borrowing tied to the AI investment boom.”
Tags: $40 trillion, AI investment, Bond yields, Boom, Borrowing costs, Concerns, Consumer spending, Deficits, Economy, Financing, Government, Inflation, Intervention, Investors, Rising, Treasury, U.S., Yields Federal debt
Financial Times (August 10)
“The yen has given up roughly half its gains following the historic joint intervention by the US and Japan, with investors saying the lack of a ‘unified voice’ among central banks lessened its market impact.” The prevailing view is that “the intervention would be unlikely to provide lasting support unless it was accompanied by interest rate rises from the Bank of Japan” and that the intervention might have been more effective with greater international co-operation, specifically involving the ECB, which was not consulted.
Tags: BOJ, Central banks, Co-operation, ECB, Gains, Interest rate, Investors, Japan, Joint intervention, Lasting support, Market impact, U.S., Yen
Motley Fool (August 2)
“While earnings season has been a mixed bag, with investors punishing companies spending exorbitantly on their artificial intelligence data center build-outs, it was the Federal Open Market Committee’s (FOMC) decision to leave interest rates unchanged that roiled the iconic Dow Jones Industrial Average, benchmark S&P 500, and technology-powered Nasdaq Composite. The Dow’s greater-than 1,100-point loss on July 29 was its worst single-day performance in over a year.”
Tags: AI, Companies, Dow, Earnings season, FOMC, Interest rates, Investors, Mixed bag, Nasdaq Composite, Punishing, Roiled, S&P 500, Spending. Data center build-outs
New York Times (July 28)
“Chipmakers are taking a hit” on a number of fronts. “Investors worry that Big Tech’s extravagant artificial intelligence spending isn’t delivering real profits yet.” Moreover, “powerful open-weight models are making A.I. cheaper to run, raising questions about whether companies need to keep buying such expensive tech, including chips.” The chipmakers still have “huge long-term investment build-out commitments from major tech players,” which raises a major question. “Is this just a healthy reset for a hot market, or the start of a bigger slowdown?”
Tags: AI, Big tech, Build-out commitments, Cheaper, Chipmakers, Expensive, Extravagant, Hit, Investment, Investors, Market, Open-weight models, Profits, Reset, Spending, Worry
The Economist (July 18)
“It is too darn hot. On July 14th the surface temperature of Earth’s tropical and mid-latitude oceans was higher than on any other July 14th in modern records. The same was true for every other day in July, and for almost all of the days in June, too. Europe has gone through three heatwaves since May, and though the continent is better prepared for such things than it used to be, tens of thousands will have died as a result.”
Tags: Bessent, Bonds, Conflict, Currency, Decipher, Dollar, Fiscal concerns, Inflation, Investors, Markets, Middle East, Reassess, Trade war, US, Warsh
