This week could set the trajectory for the AI trade: here's why

Artificial intelligence (AI) stocks staged a meaningful comeback in August, but whether the trade can build on those gains depends heavily on macroeconomic data and rate expectations. The stock market faces a pivotal test this week as corporate tech earnings coincide with “crucial” macroeconomic data. Investors must gauge whether enterprise AI adoption is expanding fast enough to offset broader monetary tightening and economic deceleration. In a way, the week stands to determine whether the AI stocks’ recent rally can maintain its upward trajectory or would it succumb to the macroeconomic pressures. Broadcom earnings to signal hardware demand Wednesday’s upcoming quarterly financial release from Broadcom Inc represents a key corporate event for AI investors. Following Nvidia’s strong earnings, the chipmaker’s results...