Donald Trump renewed his threat to dismiss Federal Reserve Chair Jay Powell, a move that historically rattles markets. Powell's term ends May 15, yet his Senate‑confirmed successor, Kevin Warsh, may not be confirmed until after that date, leaving the Fed’s independence in question.

Big Tech firms plan to pour $800bn into AI data centres this year, betting on differentiated models to drive returns. Executives warn that if all models converge on similar capabilities, industry profits could slip to high‑single‑digit percentages, barely covering capital costs.

Anthropic chief Dario Amodei likened AI to a cloud‑computing oligopoly, suggesting the sector may drift toward commodification. If AI proves difficult to keep proprietary, firms could face substantial write‑downs, reshaping valuation metrics for investors. The immediate impact is a tighter earnings outlook for the sector.