September's CPI report came in hot, showing inflation remains above the Fed's 2% target with little improvement. Core goods and services prices rose sharply, driven by tariff pass-through and AI demand in electronics and sporting goods. Despite expectations, the market reaction was mixed: two-year Treasury yields rose slightly, but five-, 10-, and 30-year yields fell after an initial spike.
The Fed may continue raising rates, with debate focused on pacing. Meanwhile, AI infrastructure provider Core Weave saw its shares drop 15% and its 2032 bonds fall below 80 cents on the dollar, reflecting investor skepticism about using insurance capital to fund AI data centers. Other data center-related stocks also declined, pulling the Nasdaq down nearly 2%.
The article reflects on Berkshire Hathaway's investment in Bending Spoons, drawing a parallel to Warren Buffett's historic 'cigar butt' strategy, suggesting a return to value-oriented investing amid market volatility.
Fuente: Financial Times Markets · Resumido por HeadlinesBriefing