Tech Stocks Rally Further on Palantir's Stellar Earnings Report

Warsh's prior favorite inflation indicator is down to 2.2% - twenty basis points shy of target!

Key Takeaways

• The $7 Trillion AI Bet on the Economy: The must-read of the weekend goes to Stock Bubbles Don’t Scare U.S. in yesterday’s Wall Street Journal. The conclusion alone was worth the price of admission: “We are heading into a danger area now, thanks to the money being poured into artificial intelligence. Estimates of $7 trillion to be spent on data centers in the next four years are enough to seriously damage the economy if productivity gains aren’t big enough to justify it. And the increasing use of debt financing means that if AI more broadly turns out to be a bubble, it could hit the financial system, too. That isn’t something the broader market could ignore.”