What a week. If Wall Street were a theme park, this week’s main attraction would be a hyper-coaster with no safety bar, powered entirely by AI capex receipts and central bank side-eye.
Here is your high-speed breakdown of what went down across global markets this week:
1. AI’s Big Spend-a-Thon Meets Scrutiny
Big Tech spent the week defending its massive artificial intelligence shopping lists. Investors are no longer just impressed by grand AI promises—they want to see the receipt.
- The Vibe: Hyperscalers are dropping billions on data centers and chips, but Wall Street is asking, "When does the actual cash start rolling back in?"
- The Drama: The market endured a wild stretch featuring the implosion of high-flying AI-focused hedge fund Situational Awareness, prompting whispers that the speculative AI bottom might finally be in as tech stocks staged a late-week rebound.
2. Fed Whispers & The Rate Dilemma
Central bankers kept everyone on their toes this week.
- The Play: The Federal Reserve held interest rates steady as traders parsed every word from Fed leadership.
- The Spoilers: Elevated oil prices and persistent supply chain worries kept bond yields spicy—the 10-year Treasury yield hovered near 4.7%, putting pressure on borrowing costs and pushing 30-year mortgage rates up to around 6.66%.
3. Around the World in 80 Basis Points
- China: Official manufacturing PMI unexpectedly slipped into contraction territory for the first time in five months, ramping up pressure on Beijing for fresh stimulus.
- Japan: The Bank of Japan held policy rates firm, but the Yen surged 3% against the dollar amid heavy intervention speculation from Tokyo officials.
- U.S. Economy: Q2 U.S. GDP growth slowed to a 1.5% annual rate—a cooler print than expected, signaling a cooling macro environment.
