Good morning and welcome to Markets Desk.
Anthropic's IPO filing is drawing serious attention from Wall Street, but not all of it is bullish. Michael Burry, the investor who called the two thousand eight housing collapse, says the prospectus did nothing to ease his concerns. He's pointing to slowing revenue growth and mounting pressure on pricing as signs the AI boom is overextended.
That skepticism is finding company in the credit markets. AI financing has become harder and more expensive to secure as scrutiny around capital spending intensifies. That tightening could actually give Federal Reserve Governor Kevin Warsh ammunition for his view that fewer rate cuts are warranted, with debt-fueled AI expansion now posing its own inflationary risk.
Meanwhile, the consumer picture remains under pressure at the lower end of the income spectrum. CEOs at Ollie's, Five Below, and Dollar General are all telling the same story on their earnings calls — shoppers are stretched thin and trading down aggressively. That chorus now includes Lowe's and Home Depot, suggesting the financial strain runs broader than just discount retail.
That's the tape. Markets Desk, signing off the floor.
