Week ahead: AI sell-off, Fed minutes, and Q4 GDP to shape Wall Street

Economic Data and Market Sentiment - US stock markets are starting the week slowly, with significant economic data expected later in the week that could influence market movements [1] - Thursday will feature the Federal Reserve's January meeting minutes and initial jobless claims, followed by Friday's preliminary Q4 GDP numbers and December personal spending and income reports [2] - Analysts predict solid growth in Q4, with UBS forecasting a 2.4% annualized increase in real GDP, driven by steady consumer spending and strong equipment investment [3] Earnings Reports and Consumer Impact - Major companies reporting earnings include Walmart Inc, Alibaba Group, and Palo Alto Networks Inc, with the Chinese New Year holiday potentially impacting US consumer-focused stocks [4] Treasury Market and Economic Indicators - US Treasuries rallied despite equities underperforming, indicating that economic data and the January CPI report are more influential than concerns about de-dollarization [5] - The AI scare trade has negatively affected tech stocks, although some firms are now trading at more reasonable valuations [6] Federal Reserve and Rate Expectations - The Federal Reserve is expected to maintain steady rates until at least May, influenced by stronger-than-expected January jobs data and ongoing inflation pressures [6] - Investors are closely monitoring signals from the Fed regarding the pace of rate cuts and the implications of housing and consumer data on market sentiment [7]