Zero Equilibrium Macro and Markwts Weekly: US Equity Markets and Macroeconomic Transmission: Summary: • The S&P VIX rose 18.90% month-on-month amid AI-related valuation concerns. The Nasdaq 100 and S&P 500 fell 5.96% and 1.78%, respectively, while the DJIA gained 1.92%. • Inflation and Monetary Policy: September CPI rose to 3.70% year-on-year, while PPI reached 6.30%. Persistent price pressures constrain the Fed’s scope to ease, sustaining higher-for-longer rate expectations and elevated discount rates. • Retail sales rose 0.8% month-on-month to $745 billion, and manufacturing and services PMIs remained expansionary at 54.5% and 54.9%. However, rising input costs threaten margins, while weak payroll growth of 29,000 complicates the outlook. • Sticky inflation, resilient spending and elevated financing costs challenge AI/tech valuations, where heavy capital expenditure and distant expected cash flows amplify interest-rate sensitivity. • The Dow’s outperformance highlights how index composition and earnings exposure shape market outcomes as investors reassess AI investment returns. Read on the ful article in link 👇🏾 ✍️🏽 By @Muhammad_Okoye for Zero Equilibrium Macro and Markets. https://t.co/cFrK3SYdM3