Richer America, Happier People?

Market Sizzle: AI threats, rising wealth, Nvidia’s $3T milestone, labor costs slow ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Richer America, Happier People?]( Market Sizzle: AI threats, rising wealth, Nvidia’s $3T milestone, labor costs slow [Josh Belanger](joshbelanger) Jun 6 joshbelanger   [READ IN APP](   Ever wondered if there's a magic salary for happiness? Turns out, it might not be as simple as $75,000 anymore—more like $110,000 with inflation. And recent studies suggest happiness might keep rising with income, but with some serious diminishing returns. So, keep chasing those dreams, but remember, money can't buy everything... except maybe a slightly bigger smile. Americans Wealthier Than Ever Americans have more investment income than ever. Many have invested slowly for decades, reaping rewards now. They earn from stock dividends, helping fund big expenses. Inflation isn’t a big deal for them. In Q1, Americans earned about $3.7 trillion from interest and dividends. This income helps them spend more despite high prices. The Fed struggles with inflation as people keep spending. Higher interest rates mean more money from investments. But, small businesses and low-income families struggle with loans and credit cards. Many buy bonds for safe returns. Investments help plan trips and buy things for family. Growing wealth from investments helps many Americans beat inflation's effects. Labor Costs Surge Again US labor costs rose less than first thought in Q1. Revised data shows a 4% annual rate, down from 4.7%. From a year earlier, the increase is just 0.9%, the slowest in three years. The Fed wants lower labor costs through better productivity. But, productivity barely rose, increasing only 0.2%. Companies are trying to boost efficiency with AI, but high rates limit investments. Initial jobless claims rose by 8,000 to 229,000 last week. Hiring plans for 2024 are at a decade-low. Andrew Challenger says hiring announcements are the lowest in ten years, showing a stalling labor market. Nvidia Surpasses $3 Trillion Nvidia's market value hit $3 trillion. It's the third company to reach this milestone. The stock price more than doubled this year, after tripling in 2023. Nvidia’s AI chips are key to its success. These chips power AI in many industries. CEO Jensen Huang says they're starting a new industrial revolution. The company plans to launch new, faster chips. Nvidia controls over 80% of the AI chip market. Tech stocks are booming. The S&P 500 and Nasdaq Composite hit record highs. Falling bond yields helped tech stocks soar. Investors are optimistic about Nvidia’s future growth. Its success boosts the whole tech sector. AI's Financial Threat Janet Yellen warns AI could bring risks to finance. Speaking to bankers and tech leaders, she highlights the huge rewards and dangers. AI helps investors predict and banks fight fraud. But it can be complex and biased, causing market issues. Yellen stresses the need for strong risk management. AI's rapid evolution may make finance cheaper and easier. Yet, its complexity can lead to problems. Yellen urges careful monitoring of AI's impact on financial stability. The Treasury and IRS use AI to catch fraud, showing its power. But as AI grows, understanding and managing its risks is crucial. Quick Sizzles: - Job Openings Drop: Job openings fell by 296,000 in April to 8.06 million, the lowest since February 2021. The labor market is balancing post-pandemic. - Campbell Snack Sales Struggle: Campbell Soup's snack sales fell 2%, while meals division rose 15%, helped by Rao’s pasta sauce acquisition. - Dollar Tree Reviews Family Dollar: Dollar Tree considers selling Family Dollar after buying it for $8.5 billion in 2014. Struggles prompt strategic review. - Canada Cuts Rates: G7 First: Canada’s central bank cuts interest rate to 4.75%, the first G7 nation to do so, citing economic slowdown. - China Recruits Western Pilots: The US and allies warn that China is aggressively hiring Western fighter pilots to train its military. - $40B Pulled from ESG Funds: Investors withdraw $40 billion from ESG funds amid poor returns and political backlash, marking a significant reversal. - Central Banks Increase Dollar Reserves: Global central banks boost US dollar reserves, despite calls to diversify currencies, driven by high US interest rates. That’s today’s Market Sizzle; Good Trading, Good Life! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()