In other news, tech companies are racing to develop personal AI devices, with the potential to have the same impact as the iPhone. However, Facebook's Responsible AI team, tasked with ensuring new AI tech is "fair and inclusive", has halved in size since 2021 and is now more focused on compliance. Meanwhile, Apple's reliance on China for manufacturing and as a growing market is becoming problematic amid increasing US-China tensions.
Key takeaways:
- The risk of a recession hitting the US economy is increasing, with Wall Street's dream scenario of a soft landing — taming inflation while avoiding a recession — on life support.
- The Federal Reserve's fight against inflation, chair Jerome Powell has made clear his expectation to keep the benchmark Fed Funds rate above 5% well into 2024.
- Despite strong job reports and consumer spending, the economy could still face a recession if the Fed doesn't feel comfortable lowering rates and losing the progress made against inflation.
- Market experts predict that the bond-market sell-off will continue, with yields expected to keep climbing.