Zacks Podcast Flags 23,000 July Job Loss as $1 Trillion AI Boom Lifts Stocks

1 articles · Updated · Yahoo Finance · Aug 17

July payrolls turned negative with a loss of 23,000 jobs, leading Zacks Market Edge’s latest episode to focus on whether a 2026 U.S. recession is becoming more likely.
Two prior months were revised lower, and Zacks said the economy is not booming despite roughly $1 trillion in AI spending and strong federal outlays in defense and agriculture.
The Federal Reserve has not signaled alarm, leaving rates unchanged at its July meeting; its next policy decision is scheduled for Sept. 15-16.
Stocks are sending the opposite message: the S&P 500 and Russell 2000 are hitting fresh highs as AI data-center spending spreads beyond chipmakers into infrastructure suppliers.
Arrow Electronics was cited as one beneficiary, reporting Aug. 6 that second-quarter sales jumped 32% to $9.9 billion on broad-based demand.