PPI, Retail Sales, Jobless Claims, and AI Capital Risk in Market Discussion

Steve Leeman presents September PPI, retail sales, and jobless claims data and joins a market discussion on how those figures intersect with bond market moves and concerns about AI-related capital spending. The conversation compares hotter wholesale inflation and steady consumer data with an afternoon shift toward risk transfer out of AI hardware and other long-duration investments. It also considers whether the AI economy and the broader real economy are operating through separate channels and how Fed expectations may affect riskier equities and capital rationing for AI projects.

■ Economic data releases
- September PPI final demand month-over-month and year-over-year figures
- Retail sales and core retail sales readings
- Jobless claims and four-week average

■ Market reaction
- Treasury yields and the 10-year note
- Tension between inflation fears and AI default concerns
- Bond market levels referenced in the discussion

■ AI and risk transfer
- Pressure on AI hardware and capital-consuming sectors
- Fed rate expectations and riskier stock valuations
- Semis and AI-related power industrials declines since June

■ Economic channels
- Whether AI economy and real economy are independent
- Rate sensitivity of AI capital expenditure plans

This discussion is aimed at viewers tracking macroeconomic data, fixed income, and AI-related equity themes. It offers a concise overview of the data points and the market narratives connecting inflation, Fed expectations, and capital flows into AI. Viewers can use it to follow how upcoming PCE and Fed communications may shape risk sentiment and AI investment conditions.