What Matters Today: Risk Appetite Rebound and AI Agents

Risk appetite has staged one of its fastest recoveries on record, driven by AI-related tech gains, even as US consumer sentiment wavers and producer price inflation accelerates.

Key Takeaways

• 1.The Goldman Sachs Risk Appetite Indicator (RAI) has seen one of its sharpest rebounds on record, moving from negative to above 1 in 43 days.
• 2.US Consumer stocks experienced significant underperformance, driven by disappointing results from key players like MCD, SHAK, and PLNT.
• 3.AI transition costs are substantial, with $150bn/year currently reallocated to labor for AI deployment in the US, potentially reaching $1tn globally for non-hardware investments.

Table of Contents

• 1) One of the Sharpest Risk Appetite Rebounds Ever
• 2) Worst Day of Underperformance for US Consumer in 4y
• What to Watch Today... ONON
• 3) AI Agents, Intangible Capital, and the Next Superstars
• 4) What's Behind the Recent Core PPI Acceleration?

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