JPMorgan Warns Inflation Risks Linger Despite Stock Peaks as Capex Rises 12%
Updated
Updated · Bloomberg · May 11
JPMorgan Warns Inflation Risks Linger Despite Stock Peaks as Capex Rises 12%
4 articles · Updated · Bloomberg · May 11
Grace Peters said inflation risks still sit beneath equity markets trading near highs, even as investors continue to support elevated valuations.
A 12% rise in companies' capital expenditure outside AI in recent earnings underpins that view, with Peters arguing the spending surge reflects a broader structural shift.
JPMorgan ties that shift to three forces shaping markets—global fragmentation, artificial intelligence and inflation—which have gained urgency after recent events including the Middle East war.
That mix suggests stock-market strength is being sustained by heavier investment and national-security priorities, even as inflation pressures remain embedded in the backdrop.
With AI driving markets but not broad productivity, is a massive tech bubble about to burst?
As nations prioritize security over trade, will state-led investment fuel growth or chronic inflation?
Can global energy grids support the trillion-dollar AI boom without causing widespread power shortages?