The AI Fear Trade Strikes Again Before US CPI Data

US markets saw a sharp tech-led sell-off termed the 'AI fear trade' ahead of January's inflation data, leading to a flight to safety in US Treasuries. Major indices and commodities like gold and silver fell while investors await US CPI results.

Key Takeaways

• 1.US equity markets experienced a sell-off led by the technology sector ('Magnificent Seven') due to concerns over future free cash flows vs current earnings.
• 2.Investor focus is heavily on upcoming January US CPI figures, which are expected to remain stable at +0.3%.
• 3.Real estate advisory firms (CBRE, JLL, Cushman & Wakefield) are facing significant valuation pressure over potential AI-driven business model disruption.

Table of Contents

• MARKET LINES
• Rates
• Equities
• Credit
• FX
• HIGHLIGHTS
• DAY AHEAD
• MARKET RECAP
• INDUSTRY NEWS
• Banks
• Real Estate
• Tech & data
• Energy Transition
• RESEARCH HIGHLIGHTS
• RESEARCH LATEST FORECASTS
• RESEARCH EVENTS
• Replays
• DISCLAIMERS

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