BofA: AI Capex Remains a Tailwind for US Growth - FJElite

AI capex continues to rise, with hyperscaler spending estimates being revised higher and expected to increase again in 2027. The investment boom is also supporting the broader economy through wealth effects, stronger manufacturing production, employment in AI-related industries, and data-centre construction. These effects continue to reinforce US economic resilience even with the risk of higher-for-longer rates.

Next week’s main focus is the July FOMC minutes, alongside industrial production and a heavy housing calendar. The minutes are already somewhat stale after softer July jobs and inflation data reduced expectations for further hikes, but they may still show how many officials beyond the three dissenters were leaning toward a hike or willing to support one. Markets will also look for any clues on what threshold the Committee might require for a September move.