Jun 18, 2025

I recently came across news indicating that U.S. inflation has remained robust despite the anticipation of tariff impacts. The latest data on U.S. inflation revealed that prices for imported goods like sporting equipment and apparel have not seen significant increases. While some categories have experienced price hikes, the overall Consumer Price Index for durable goods has slightly decreased from January to May. However, the annualized headline CPI inflation rate for 2025 is at 2.3%, slightly higher than the pre-pandemic average.

Moreover, the Producer Price Index data suggests potential upside risk to inflation due to higher input costs, aligning with expectations regarding tariff impacts. Analysts are focusing on categories like rents, indicating less improvement in underlying inflation than initially thought. There is also growing concern about the impact of AI on the market, with top fund managers recommending specific stocks to buy in light of this trend.

One notable fund manager, Alger’s Patrick Kelly, believes that AI adoption is reaching a turning point, with companies well-positioned to benefit from this technological advancement expected to experience significant growth. The market is witnessing advancements in autonomous vehicles, robots, and humanoids, signaling a new phase in the AI revolution. Kelly’s fund has strategically invested in companies like Nvidia, Microsoft, and Amazon, along with independent power producers, to take advantage of this trend.

Additionally, there is a wave of first-time fund launches in the private market, despite challenges such as liquidity concerns and competition from mega-funds. The financial landscape is evolving rapidly, with inflation trends and the impact of AI reshaping investment strategies and opportunities. The market is dynamic and responsive to these changes, presenting both challenges and opportunities for investors and companies alike.

Stay Well!