WS #14711
President Trump and Chinese President Xi Jinping agreed to continue working together on security, technology, and artificial intelligence, with Trump describing their relationship as having made 'tremendous strides.' This diplomatic engagement offers a potential counter-narrative to escalating trade tensions, though its market impact is currently muted by geopolitical risks in the Middle East. Philly Fed President Anna Paulson stated that underlying inflation is running between 2.5% and 3% and that further modest tightening may be necessary. This hawkish stance has increased the probability of a September rate hike to 64% and pushed 10-year Treasury yields higher, creating headwinds for rate-sensitive growth stocks and high-multiple tech names. Oracle has sent a force majeure notice to Blue Owl Capital regarding its $165 billion New Mexico data center project, causing Oracle shares to plunge and wiping billions in market cap. This development highlights execution risks in the AI infrastructure build-out and raises questions about the reliability of large-scale cloud expansion timelines.
US-China Diplomatic Engagement
President Trump and Chinese President Xi Jinping agreed to continue working together on security, technology, and artificial intelligence, with Trump describing their relationship as having made 'tremendous strides.' This diplomatic engagement offers a potential counter-narrative to escalating trade tensions, though its market impact is currently muted by geopolitical risks in the Middle East.
Philly Fed President Anna Paulson stated that underlying inflation is running between 2.5% and 3% and that further modest tightening may be necessary. This hawkish stance has increased the probability of a September rate hike to 64% and pushed 10-year Treasury yields higher, creating headwinds for rate-sensitive growth stocks and high-multiple tech names.
Oracle has sent a force majeure notice to Blue Owl Capital regarding its $165 billion New Mexico data center project, causing Oracle shares to plunge and wiping billions in market cap. This development highlights execution risks in the AI infrastructure build-out and raises questions about the reliability of large-scale cloud expansion timelines.