WS #16950
U.S. worker productivity surged 3.6% in Q3, the strongest print in years, while unit labor costs fell. This data contradicts recession narratives and suggests the economy is absorbing AI-driven efficiency gains without immediate job losses, though labor's share of output has hit record lows. Concurrently, oil prices dropped to a two-month low following midterm results, reducing energy inflation risks. This macro backdrop supports a 'soft landing' thesis for the broader market, even as tech valuations compress.
Macro Productivity vs Equity Selloff
U.S. worker productivity surged 3.6% in Q3, the strongest print in years, while unit labor costs fell. This data contradicts recession narratives and suggests the economy is absorbing AI-driven efficiency gains without immediate job losses, though labor's share of output has hit record lows. Concurrently, oil prices dropped to a two-month low following midterm results, reducing energy inflation risks. This macro backdrop supports a 'soft landing' thesis for the broader market, even as tech valuations compress.