This Market Is Very Scared About US CPI: 3-Minutes MLIV
Speakers
Mark Cudmore
— Executive Editor, Bloomberg Live / Macro Strategist
Summary
Mark Cudmore discusses the AI bubble entering its end game phase, pre-CPI nervousness in tech stocks, the impact of a strong jobs report on Fed rate hike expectations, and the potential for yields to rise and commodities and emerging markets to outperform.
- Asian stocks and US futures are negative, led by tech weakness.
- Mark Cudmore sees the AI bubble in a 'problematic end game phase'.
- The upcoming US CPI print is creating nervousness, with upside risk to the headline.
- A strong jobs report has shifted the narrative, increasing rate hike fears.
- In prior bubble cycles, commodities and EM outperformed in the end game.
- Yields may go higher as the market reprices Fed rate hikes.
Ideas
AI bubble enters end game phase.
We are in the more problematic end game phase of the AI bubble, similar to prior bubble cycles where increased volatility and underperformance of the leading sector occurred. This phase could last a couple of months, and suggests avoiding AI and tech stocks.
Commodities and EM to outperform.
In prior bubble end-game phases, commodity markets and emerging markets outperformed. As we are now in a similar end game for the AI bubble, commodities and emerging markets should outperform again over the next couple of months.
Yields to go higher.
A strong jobs report and a likely upside CPI surprise could push yields higher as the Fed may be forced into a series of rate hikes. Yields are likely going higher as the narrative around the Fed shifts to tightening.
Up Next
This Bloomberg Markets video, published June 10, 2026, features Mark Cudmore discussing AIQ, DBC, EEM, U.S. Treasury yields. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Mark Cudmore · Tickers: AIQ, DBC, EEM, U.S. Treasury yields