A tug of war between #inflation and #AI | Market Week in Review

In this Market Week in Review, Russell Investments’ Global Chief Investment Strategist Paul Eitelman, CFA, examines the tug of war between hotter U.S. inflation and renewed concerns around the artificial intelligence investment cycle.
Paul looks at why stronger inflation data keeps another Federal Reserve rate hike in play, why investors are questioning returns and financing risks across the AI buildout, and why Treasury yields fell despite hotter inflation.

• Hotter U.S. inflation keeps another Federal Reserve rate hike in play
• Renewed concerns around AI investment and financing pressure weighed on technology stocks
• Falling Treasury yields despite hotter inflation highlight the market’s flight to safety

Questions answered:
Will the Fed raise rates again?
Sticky inflation keeps another hike in play, although the timing remains uncertain.
Why are AI stocks under pressure?
Investors are asking whether large capital investments are generating sufficient returns, particularly as financing costs remain elevated.
Why did Treasury yields fall despite hotter inflation?
Risk aversion around AI drove demand for government bonds, outweighing the immediate inflation signal.
Read the full analysis:
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#ArtificialIntelligence #FederalReserve #PCE #aibuildout
Chapters:
00:00 Inflation and AI shape the week
00:30 Hotter inflation and the Fed outlook
02:00 AI investment comes under scrutiny
03:05 Why Treasury yields fell
03:30 U.S. midterms move into focus

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Date of first use: October, 2026