“We reality check three dynamics that could challenge the path of least resistance (higher) for Equities into year-end. First, just as $34 billion in tariff revenue was collected in October, the legality of the Trump administration’s tariffs is now under review with the Supreme Court. The fallout matters for the U.S. national debt and deficit, among other things. Second, the Artificial Intelligence (AI) build-out rolls on with fresh commitments reaffirming or raising hyperscalers’ intentions. Concerns, however, over vendor financing— think venture capital, debt and, in some cases some more unconventional arrangements— are mounting. And third, headline employment is cooling, and layoffs attributed to AI as cited by companies are now rising.”
Morten W. Langer
