Wall Street pushes back on AI bubble concerns, BLS plans to release Sept CPI

Market Overview - US stock futures are slightly changed as the S&P 500 aims to finish a modest week of gains, transitioning from a debasement trade to a broad rally across various asset classes [1][5] - The dollar has seen its best week of the year, while gold and cryptocurrencies have reached new highs [1][33] Economic Data - The Bureau of Labor Statistics is preparing to release the September CPI report, with staff being called back despite the government shutdown [2][3] - This CPI data is crucial for calculating Social Security adjustments and will influence the Federal Reserve's rate decisions [3][17] Company Earnings - Levi Strauss reported third-quarter revenue of $1.5 billion, meeting estimates, and raised its full-year outlook, but warned of tariff impacts and provided conservative guidance for Q4, expecting only 1% organic net sales growth compared to 7% in Q3 [4][24][25] - The cautious outlook led to a nearly 11% drop in Levi's stock in pre-market trading [24] AI Sector Insights - Concerns about a potential bubble in the AI sector have been discussed, with Goldman Sachs and UBS suggesting that the current market leaders have strong balance sheets, differentiating them from the dotcom bubble era [7][8] - The NASDAQ has rallied approximately 50% since April, raising concerns about stretched valuations [8][9] Treasury Market and Dollar Dynamics - Despite the narrative of a debasement trade, the dollar has been consolidating and is currently at a two-month high, with a year-to-date decline of about 10% [11][13] - The behavior of the Treasury market does not align with expectations of a debasement trade, indicating strong demand for US assets [34][36] Rare Earth and Tech Stocks - Qualcomm is under scrutiny from China for potential anti-monopoly violations, which may heighten tensions between the US and China [28] - Applied Digital reported better-than-expected first-quarter revenue and is in advanced talks for a new data center, reflecting growth in the tech sector [29][30] - Rare earth stocks are gaining due to China's tightening grip on global supplies, with speculation about increased US government involvement in the sector [31]