Welcome back to our Sunday edition, a roundup of some of our top stories. As the debate over AI tools’ usefulness rages on, here’s an interesting data point. A recent survey found 77% of workers said the tech decreased their productivity and added to their workload.
But first: What goes down must come up.
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This week’s dispatch
Market U-turn
What a week.
The week kicked off with investors in full-blown panic mode. A combination of disappointing earnings, surprisingly weak economic data, and the destruction of a trading strategy tied to the Japanese yen culminated in a huge market sell-off on Monday.
The industry, to put it mildly, was freaking out.
Was this the start of the long-awaited recession? Should there be an emergency rate cut? How could the Fed screw this up so badly?
But it wasn’t long before the market started to stabilize. By Wednesday, experts were explaining why we shouldn’t get an emergency rate cut.
Thursday was the nail in the coffin of the week’s recession-that-never-was. This time it was better-than-expected economic data — a drop in jobless claims — that led the S&P 500 to its best day in almost two years.
When the dust finally settled, the S&P 500 ended the week nearly flat.
Risks remain in the market. Questions continue to mount about the real-world application of artificial intelligence, and whether heavy spending on it can translate to bigger profits. That’s not ideal for a market that’s relied on the hype around the tech for nearly two years.
But perhaps there is something to be learned from Jamie Dimon. The JPMorgan CEO said in a recent interview that people tend to overreact to the daily fluctuations of the markets.
“​​​​Sometimes it’s for good reason, sometimes it’s virtually no reason,” he said.
Reject modernity; embrace tradition
Once upon a time, budding apps like Uber and Airbnb offered luxe conveniences at low prices. These burgeoning businesses believed they could build customer loyalty to their brands by slashing prices initially.
But now that these brands have made it big, those once-low prices have shot up. That’s left a generation accustomed to low-cost luxury resorting to old-fashioned alternatives, like hotels and public transit, to save money.
New problems require old solutions.
The times, they are a-changin’
We’re no longer in the job market where workers had more leverage than employers. July’s weaker-than-expected jobs report, which spooked investors, could give companies cover to reconsider work policies.
Job seekers hoping to land a remote job may be out of luck. Dreams of a four-day workweek may be dashed. But perhaps the biggest threat to the rank and file is layoffs, as jittery CEOs could make sweeping cuts.
Goodbye, four-day workweek.
Also read:
Startups to watch
For our annual list of the most promising startups, Business Insider asked 50 top venture capitalists to identify companies they believe are on the rise. Investors named 85 startups, including their portfolio companies as well as startups they have no financial ties to.
Unsurprisingly, AI companies dominated the list. But these startups are focused on specific verticals — like health or military defense — as opposed to trying to be all-encompassing tools.
See the full list.
A TV deal turned beastly
When Amazon needed a hit, it bet on Jimmy Donaldson, the YouTube sensation better known as MrBeast. The “Beast Games” reality show, hosted by the internet personality, was supposed to be Amazon’s bold bet on the future of TV.
Instead, “Beast Games” was rocked by controversy before it was even released. Insiders say the show was risky from the start, and it’s unclear what will happen to it next.
How the deal went sour.
Also read:
This week’s quote:
“With the wiring I have, being an expert on recessions was probably not the smartest choice.”
— Claudia Sahm, the former Fed official, on her frustration that her recession indicator became a key talking point among investors last week despite her optimism about the economy.
More of this week’s top reads:
- How the stock market can predict the outcome of the presidential election.
- At Blackstone, nice guys finish first.
- Venture capitalists are heading for the exits.
- Meet the new moms using monthly basic income to afford childcare.
- Amazon is raising its hiring bar for some tech jobs.
- Meet Michal Kosinski, the Oppenheimer of AI.
- The Global Alliance for Responsible Media is “discontinuing” after Elon Musk’s X filed an antitrust lawsuit against it.
- I was part of Russia’s prisoner swap with the US. Here’s how it feels to suddenly be free.
- Inside the stressful culture at the Gates Foundation.
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Silicon Valley’s political divide is now public — and petty.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Lisa Ryan, executive editor, in New York. Amanda Yen, fellow, in New York.
Read the full article here
