Last week, Nvidia (NVDA) posted record profits, contributing to its stock and the broader stock market achieving record highs on Friday. The S&P 500 gained 1.68% for the week and 6.91% year-to-date.
Far from being hype, Artificial Intelligence (AI) is poised to revolutionize business and our daily lives. By enhancing efficiency and productivity, AI technology promises transformative changes across industries. While optimism around AI remains high, mitigating AI technology risks is equally important.
This week, all eyes are on the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Index for January, which reports on Thursday. A rise of less than 0.40% from December’s figures could increase the odds of Fed rate cuts this year. On the other hand, a figure exceeding 0.40% might suggest the opposite. Today, the market expects the Fed to initiate interest rate cuts by June, followed by at least two additional reductions later in the year, totaling 0.75%+ in cuts. Check out the JP Chart of the Week showing the huge swings in policy rate expectations since October 2023.
Thank you for reading, and here’s to a great week ahead!
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