16 Oct - High Inflation, AI buildout worries
Fed Chair Kevin Warsh just eased the pressure on rate-hike bets—and markets are breathing a little easier… but the AI trade is still on shaky ground.
Speaking in Bangkok, Warsh avoided any urgent signal for tighter policy despite this week’s hotter-than-expected inflation readings. Traders are scaling back October hike odds, the dollar is softer, and U.S. futures are drifting higher after Thursday’s rebound.
Yet CoreWeave and other leveraged AI infrastructure names remain under pressure amid rising borrowing costs. Semiconductors have been weak this week, with Nvidia, TSMC’s cautious tone, and valuation worries weighing on the group. Investors are rotating into healthcare and defensives instead.
The Fed can stay patient for now—that’s supporting risk assets—but the funding math for the AI buildout is getting tougher.
Keep a lookout for Coreweave $CoreWeave, Inc.(CRWV)$ and other semis
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