Slowing U.S. job growth turns AI into Wall Street’s new safety play

The ￰0￱ market shrank massively in June, July, and ￰1￱ the same time, the Nasdaq Composite set another ￰2￱ two events ran side by side, completely ￰3￱ Wall Street isn’t confused. It’s reacting to a new reality: weak employment means stronger bets on ￰4￱ Nasdaq surged by 0.45% to a new all-time high, led by Nvidia, Robinhood, and ￰5￱ three companies are deep in the artificial intelligence space and have become investor ￰6￱ S&P 500 was up 0.21%, while the Dow Jones added 114.09 points, or 0.25%. These gains came despite the fact that job growth is now considered negative, especially after Salesforce said last week it cut 4,000 roles due to ￰7￱ also confirmed back in May that it reduced its workforce by 40% thanks to automation ￰8￱ move toward AI while ignoring labor signs Instead of selling off on poor labor news, investors bought more shares of companies using AI to cut ￰9￱ and Klarna aren’t ￰10￱ firms are shedding workers and replacing them with systems that never call in ￰11￱ investors, that’s ￰12￱ fewer jobs mean better profit margins, the market treats that as a ￰13￱ the same time, Wall Street is watching for signs of how the Federal Reserve will ￰14￱ labor data usually increases the chance of a rate ￰15￱ inflation might get in the ￰16￱ Thursday, the consumer price index will ￰17￱ market expects a rise from 2.7% to 2.9%.

Torsten Slok, chief economist at Apollo Global Management, told CNBC: “When the labor market is weakening, the Fed is supposed to cut ￰18￱ problem is that for Thursday’s CPI number, the consensus is now expecting inflation to go up from 2.7% to 2.9% … and that is exactly muddying the picture, because when inflation goes up, the Fed should be hiking.” This is why traders aren’t going all in just ￰19￱ Monday night, futures held ￰20￱ Jones Industrial Average futures rose by 57 points, or 0.13%. S&P 500 futures were up 0.12%. Nasdaq 100 futures gained 0.11%. Mild changes, but no signs of panic, even after the job data ￰21￱ National Federation of Independent Business is releasing its Small Business Optimism Index before Tuesday’s market ￰22￱ sentiment is down, that could signal more layoffs ￰23￱ businesses employ a massive portion of the American workforce, and any dip in hiring confidence could worsen the trend already visible in June’s ￰24￱ are also watching upcoming ￰25￱ and Oracle will report Tuesday after the closing ￰26￱ is expected to reveal its new iPhone lineup this week, which could shake up the tech trade even ￰27￱ while consumer companies brace for slower spending, the AI arms race is pulling in huge ￰28￱ Monday, Nebius Group signed a $17.4 billion deal to supply Microsoft with GPU infrastructure over five years, sending its shares up more than 47% after ￰29￱ contract could climb to $19.4 billion if Microsoft adds services, underscoring how demand for AI compute is exploding even as traditional labor metrics point ￰30￱ your project in front of crypto’s top minds?

Feature it in our next industry report, where data meets impact.