Apollo's Torsten Slok: Majority of Fed is feels that we're not quite done fighting inflation

Market Overview - The S&P 500 is experiencing a recovery after a significant drop, currently down about a third of 1%, while the Nasdaq is nearly flat, led by gains in Micron, Microsoft, and Nvidia [1] - Netflix, Google, and Amazon are under pressure, indicating mixed performance among tech stocks [1] Federal Reserve and Inflation - There is ongoing debate regarding the Federal Reserve's actions, particularly concerning inflation, with most members signaling that the fight against inflation is not over [2][3] - Current inflation rates are around 3%, and the consensus expects this to continue for the next 18 months, complicating potential interest rate cuts in December [4] Labor Market Insights - Jobless claims have not increased, suggesting the labor market remains stable despite some signs of weakness [8] - The unemployment rate for college graduates aged 22 to 27 shows a decline for women and an increase for men, raising questions about the impact of AI on job markets [9][10] Chinese Exports - Chinese exports have found new buyers in Asia, compensating for declines in the U.S. market, indicating a successful adjustment in trade strategies [11][12] - Exports to Europe, Africa, and Latin America have remained flat, highlighting the importance of Asian markets for China's export growth [12] AI and Corporate Earnings - The "Magnificent 7" tech companies are performing well, but earnings expectations for the broader S&P 493 have declined, indicating a need for these companies to benefit from AI advancements [15][16] - There is an expectation for a rebound in the economy next year, supported by fiscal policies that could add nearly a full percentage point to GDP growth [17] Inflation Predictions - Services are expected to show rising inflationary pressures due to increased input costs, which could impact the Consumer Price Index (CPI) significantly as services comprise about 60% of the CPI basket [20]