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With oil and gas prices falling in the wake of the detente between the U.S. and Iran, prediction market traders now think inflation has peaked.  Speculators on prediction market platform Kalshi think there’s only a 28% chance that headline inflation this year climbs above 4.2%, the annual rate of increase in the Consumer Price Index in May.  The next CPI report, measuring inflation in June, is due for release by the Bureau of Labor Statistics …

BEIJING — Chinese President Xi Jinping on Wednesday emphasized the global influence of the ruling Communist Party of China as he marked its 105th anniversary, striking a more outward-looking tone than in previous speeches. The remarks, which lasted about 40 minutes, contrasted with Xi’s prior speeches on similar occasions that had a domestic focus on China’s “national rejuvenation.” The Chinese Communist Party has “deeply changed the trend and trajectory of the world’s development through relentless …

Cyberattacks aimed at stealing American artificial intelligence technology are increasingly expanding from tech-based attacks to the exploitation of human-level vulnerabilities, with China-based actors playing a growing role. “As the AI race has heated up, the [People’s Republic of China] has targeted the tech sector increasingly,” said Matt Pearl, director of the strategic technologies program at the U.S.-based think tank Center for Strategic and International Studies. Rather than focusing on a specific trade secret, such as hardware designs, …

Michael Burry said Tuesday he has placed a bearish wager against Caterpillar, believing the construction-equipment maker has become one of the market’s most overvalued beneficiaries of the artificial intelligence investment boom. The famed investor said he shorted Caterpillar shares at $1,060.98, alongside new bearish positions in Nvidia, Applied Materials, Tesla and the iShares Semiconductor ETF (SOXX), as he prepared for what he believes is an increasingly overextended rally in AI-linked stocks. “Caterpillar jumped out at …

Cleveland Federal Reserve President Beth Hammack said Tuesday that “insatiable” demand for artificial intelligence infrastructure is fueling inflation. Should that and other pressures continue to keep prices elevated, that could drive the need for higher benchmark interest rates, the central bank policymaker said in a CNBC interview. “We’ve got inflation that’s too high, and it’s been too high for the past five years,” Hammack told CNBC’s Sara Eisen on the sidelines of the European Central …

Small-cap U.S. stocks are capping off one of their strongest first halves in decades. But this is not your ordinary small-cap boom led by traditional businesses linked to the economic cycle. This run, like the one going on with their larger-cap peers, has been driven by the rapid buildout of AI infrastructure, as spending spreads beyond the largest technology companies to a broader network of suppliers. Investors believe the small-stock rally can broaden out beyond …

China’s economy is showing signs of picking up, thanks in part to a rebound in shipments to the U.S. “Manufacturing saw the clearest improvement. Retail sales recovered nicely,” according to the China Beige Book, an independent survey of Chinese businesses, on Monday. The survey, covering 1,321 businesses from June 1 to 22, pointed to a surge in luxury goods sales, but weaker tourism-related spending. “The second quarter is ending on a more positive note than …

SpaceX became one of the quickest additions ever to the Nasdaq-100 index, setting up a fresh wave of buying from passive investors less than a month after the company’s blockbuster public debut. Nasdaq announced after the close Friday that SpaceX qualifies for inclusion in the benchmark technology index. Assuming the company meets the requirements, index-tracking funds and other product sponsors would begin purchasing shares after the market closes on July 6, with SpaceX officially joining …

The best government bond market may be outside the United States. Allspring Global Investments’ George Bory is pushing clients toward countries whose central banks are raising interest rates or have different inflation dynamics. “Bond markets everywhere have rushed to price inflation. Places like the UK, certainly across Europe, even places like Australia — we’ve seen a material run-up in central bank tightening expectations,” he told CNBC’s “ETF Edge” this week. “Now, some of that’s been …

SpaceX became one of the quickest additions ever to the Nasdaq-100 index, setting up a fresh wave of buying from passive investors less than a month after the company’s blockbuster public debut. Nasdaq announced after the close Friday whether SpaceX qualifies for inclusion in the benchmark technology index. Assuming the company meets the requirements, index-tracking funds and other product sponsors would begin purchasing shares after the market closes on July 6, with SpaceX officially joining …