Hu Xiu·2025-08-06 03:12Core Viewpoint - The recent significant drop in the US stock market is attributed to a crisis of trust in official employment data, exacerbated by President Trump's reaction to poor job statistics and his threats to dismiss the head of the Labor Statistics Bureau [2][4][10]. Group 1: Employment Data and Market Reaction - The US non-farm payroll data for July showed an increase of only 73,000 jobs, significantly below the expected 104,000, leading to concerns about the labor market's health [7][5]. - The Labor Statistics Bureau revised down previous employment figures for May and June, indicating a troubling trend in job growth over the past three months [7][9]. - Trump's allegations of manipulated employment data and his threats to fire the Labor Statistics Bureau head have raised fears about the reliability of future government statistics [10][12]. Group 2: AI Investment Trends - Major tech companies, including Microsoft, Meta, Google, and Amazon, are projected to invest nearly $400 billion in AI infrastructure this year, surpassing the EU's total defense spending last year [21][43]. - The capital expenditure (Capex) for AI is expected to continue rising, with companies like Meta and Microsoft allocating around 35% of their revenue to capital spending, primarily for AI [22][24]. - AI is increasingly seen as a growth driver, with companies like Meta reporting significant revenue increases attributed to AI-driven improvements in user engagement and advertising effectiveness [25][26]. Group 3: Market Differentiation Among Tech Giants - The recent earnings season has highlighted a stark contrast in performance among the "M7" tech giants, with companies like Meta and Microsoft showing strong growth, while Amazon and others have struggled [60][61]. - Amazon's cloud service, AWS, reported disappointing growth figures, raising concerns about its competitive position against Microsoft and Google in the AI space [33][37]. - The market is witnessing a shift from a collective rise of the M7 to a focus on companies that can effectively monetize AI, indicating a potential for increased market differentiation [63][64].