This week on Inside the Economy, we examine wages, housing, and U.S. equities. According to the Weekly Labor Market Stress Indicator, labor market stress remains minimal, with conditions characterized by low hiring and low firing. What impact could AI innovations have on the labor market, and is U.S. manufacturing employment showing signs of growth? On the services side of the economy, which represents a larger share of the U.S. economy, inflation is running at approximately 3.2%. With another Federal Reserve rate hike possible this year, could tighter monetary policy help bring services inflation down? In U.S. equity markets, foreign investors have increasingly shifted their focus from Treasuries to equities, with equity investments now exceeding Treasury investments. Meanwhile, what does the U.S. government’s equity portfolio look like? The S&P 500 has pulled back over the past few weeks but still appears slightly overvalued relative to earnings. How much has AI contributed to the index’s gains since the introduction of ChatGPT? Tune in to learn more!
Key Takeaways:
- Head CPI Inflation at 3.7% (YOY)
- 10-year Bond at 4.96%
- U.S. Pending Home Sales Index dropped 7.3% in September to a reading of 66.0
