Markets Face Key Tests From Inflation Data Earnings and AI Doubts

U.S. stocks slid last week, led by a sharp drop in technology shares, as losses in AI infrastructure firms intensified doubts about whether heavy data-center spending and borrowing can generate adequate returns; stress in AI-related debt also widened. Investors now face a busy week of economic releases and corporate earnings, with U.S. and European flash business surveys and results from Meta and Tesla likely to shape views on growth and AI investment. Above-forecast U.S. inflation has revived concern about interest rates, though markets are assigning limited odds to a Federal Reserve hike at its next meeting while watching for further policy signals. Other closely watched events include inflation reports in the UK, Japan and Canada; Chinese growth and activity data and a policy-rate decision; and South Korea’s central-bank meeting, trade figures and producer-price report.