Is Inflation About to Derail the Rally? With Andreas Steno | Macro Mondays: October 19, 2026

The current macroeconomic environment reflects a transition from a cutting cycle to a hiking cycle, driving significant credit stress and widening sovereign bond spreads, particularly in France. Market participants are increasingly focused on the fundamental viability of the AI supply chain, specifically how rising interest rates and debt financing costs impact capital expenditure. Despite extreme market fear and record put option volume, income generation from GPU capacity continues to outpace liability costs, challenging the narrative that hyperscalers will halt AI investment. Inflation momentum in core terms is approaching a peak, and a more favorable comparison base against previous energy price spikes suggests potential relief for funding markets by early next year. Furthermore, the U.S. government's decision to restrict DeepSeek from civilian agencies marks a critical escalation in geopolitical AI competition, signaling potential future volatility for the sector.