Market Perspectives
For a year the market treated AI capital spending as a virtue. This week it started treating it as a cost. Alphabet lifted its 2026 bill above $200bn and Tesla went cash-flow negative for the first time in two years, and investors sold both, wiping almost $800bn off the Magnificent Seven in a single session, their worst day since April 2025. Oil near $90 and a 10-year back above 4.6% did the rest. The S&P at 7,411.98 slipped 0.85% on the week while Europe's Stoxx rose 0.82% to 644.51, the clearest US-to-Europe rotation of the summer. When yields, oil and gold all rise together while the megacap index falls, the market is telling you the same thing from four directions: the cost of the AI build-out has finally started to matter.
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BONDS & MACROECONOMICS
The 10-year Treasury yield at 4.679% jumped as WTI near $89.30 put the inflation trade back on, and gold at $4,056.30 firmed as the hedge of choice against both.
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