AI Optimism Returns, Pushing Inflation Risks Into The Background

Summary Investors appeared poised to refocus on rising interest rates last week and related fallout for stocks. Yesterday’s catalyst centered on Meta and its new Muse AI agent, which could reshape the enterprise tech landscape, fueling fresh optimism about the company’s growth prospects. Monday’s AI-fueled optimism spilled over to stocks generally. The SPDR S&P 500 ETF, for example, rallied to just below its record close from early August. Treasury yields and oil prices cooperated by pulling back yesterday after rising for three straight weeks. primeimages/iStock via Getty Images Investors appeared poised to refocus on rising interest rates last week and related fallout for stocks. Then came Meta’s ( META ) latest AI unveiling, which helped revive the market’s preferred mantra: strong AI-driven earnings growth can overcome This article was written by James Picerno 7.02K Followers Follow James Picerno is the director of analytics at The Milwaukee Co., a wealth manager that is the adviser to The Brinsmere Funds, a pair of global asset allocation ETFs. He also edits CapitalSpectator.com and The US Business Cycle Research Report (CapitalSpectator.com/premium-research). He is the author of three books, including "Quantitative Investment Portfolio Analytics In R: An Introduction To R For Modeling Portfolio Risk and Return." Previously he was a financial journalist at Bloomberg and before that at Dow Jones.