AI CEOs Sign Safety Accord, PCE Inflation Comes In Cool
The Rundown
The episode covers a cooling PCE inflation report that is providing relief to the bond market and shifting rate hike expectations. It also d
Key takeaways
- August PCE inflation rose 0.3% month-over-month, with year-over-year figures at 3.4%, beating expectations.
- AI leaders including Jensen Huang and Elon Musk signed a non-binding two-page accord on AI safety at the White House.
Main topics
- PCE Inflation Report
- AI Safety Accord
Notable quotes
This is kind of like a pinky promise that these AI companies are making.
Conclusion
A comprehensive look at how macroeconomic indicators, regulatory shift
Transcript preview
Speaker 1 (0:00) Public.com presents The Rundown, your daily market update in 10 minutes. My name is Zaydad Mani and today is Wednesday, September. September 30th. In today's episode, we'll break down the latest inflation report and why it's finally giving the bond market some relief. We'll also tell you what happened when President Trump brought some of the biggest names in AI to the White House yesterday and also recap OpenAI's huge Dev Day announcements. Then stick around to the end of the show to find out why flying home for the holidays could cost you more than it has in a decade. We got a great show for you today. Let's go. Speaker 1 (0:41) Stocks finished slightly lower on Tuesday. The S &P 500 fell by 0.2 % while the Nasdaq dipped by 0.1%. And I'm kind of sick of saying this by now, but the bond market was the headliner once again. The 10-year and 30-year treasury yield both ticked higher despite other macro factors that would typically bring down yields. Like for example, oil prices fell by more than 2 % yesterday because Saudi Arabia restarted their critical East-West pipeline. On top of that, New York Fed President John Williams gave a relatively dovish speech yesterday saying the Fed has no need for urgency when it comes to raising rates again. Those- some pretty shocking comments that kind of caught the market off guard. In fact, the odds of an October rate hike went from around 70 % before his speech down to roughly 50%, according to prediction markets, which are now available on public.com. And the odds of a rate hike went down again this morning, dropping to 35 % after the PCE inflation report for the month of August came out. This report is the Fed's preferred inflation gauge, and it came in cooler than expected. Headline PCE rose just 0. 3 % month over month, which was right in line with estimates. But on a year over year basis, inflation was 3.4 % versus the 3.7 % that was expected. And then if you look at core PCE, which strips out food and energy, that rose 0.2 % for the month and was up 3 % year over year, which was also cooler than the 3.3 % expected. So I got to say that was a pretty encouraging inflation report. The market seems to love it. I mean, treasury yields are dipping a bit and stock futures are moving higher in the pre-market at the time of this recording. Now, keep in mind, this PCE report from this morning was for the month of August, so it is a bit dated, but the market seems to be focused on the good news. And who knows, maybe the bond market will finally chill out and yields will pull back some more. We'll continue to keep an eye on all that, so definitely get subscribed to the podcast if you haven't already and tune in every day to stay in the loop. Let's run through some headlines. And we're talking AI. Yesterday, President Trump hosted a lunch at the White House with some of the biggest names in AI. Nearly two dozen executives and AI leaders were there. I'm talking Jensen Huang, Elon Musk, Dario Amadei, Mark Zuckerberg, Sundar Pichai, you name it. And by the end of that lunch, these executives signed