Stocks Extend Decline as Yields and Oil Prices Rise

0:00Welcome to Risk Reversals Market Matrix, your AI-generated podcast curated by Guy Adami and Dan Nathan, breaking down the day's most impactful stock market and business headlines. I'm your host, Bronson, and all of today's market data is provided by FACSET. As a reminder, be sure to subscribe to Risk Reversals Daily Markets newsletter. That's at riskreversal.substac.com. Now to the news, it's Wednesday, September 9th, and these are your top stories. Risk finished lower, as investors contended with two familiar headwinds, higher oil prices and higher interest rates. Rate-sensitive areas of the market came under the most pressure, with the Russell 2000 notably weaker as yields pushed to their highest levels in several years. Once again, pockets of tech continued to attract buyers, helping cushion some of the damage. Treasury yields jumped on Wednesday after the Treasury Department said it's going to triple its buyback operation of longer-dated government debt to $6 billion. The move follows the Treasury Department's announcement last month that it's going to

1:02at least double the level of government debt buybacks. As CNBC notes, even with the increased buyback plan, yields advanced because some on Wall Street anticipated even bigger repurchases. Peter Bookvar of the book report said some thought the buyback would be as high as $7 or $8 billion. Speaking of the Treasury, reporting by Bloomberg details warnings from US Treasury Secretary Scott Besett, cautioning currency speculators against betting against the Japanese yen, asserting that coordinated policy intervention gives official monetary authorities the upper hand. Emphasizing that market intervention is a core tool in international policy management. Besen declared that traders taking leverage short positions on the yen-face substantial downside risk, as official flows move to support the currency. Next, the AI center build out is running into some snacks. Alphabet and Blackstone's new cloud venture has hit delays for major data center locations that were supposed to run Google's chips, underscoring the obstacles standing in the way of big-text AI ambitions.

2:03According to Bloomberg, data center builders are facing shortages of such equipment, with wait times of almost a year. That could complicate Blackstone's goal to cement itself as the world's largest financier of digital infrastructure. Google is trying to bring the chips running its Gemini AI model to a broader swath of customers. And build a hardware ecosystem to better rival that of Nvidia. Amazon, Meta, and Google risk losing decades-long exemptions due to a backlash against their facilities. As detailed by the journal as an example, over a decade ago, Ohio lawmakers exempted tech companies from sales taxes on computer servers and other equipment needed for data centers. Betting that changes worth millions of dollars would lure much needed investment to the state. It worked, turning Ohio into one of the leading destinations for data centers. But then, the artificial intelligence boom supersized the tax exemption, pushing it to more than $1.5 billion last year, more than 10 times the original state estimate. Then, voter outrage prompted Republican governor Mike DeWine to pause new applications for

3:04the sales tax exemption in May. One of the other reasons there may be some voter pushback to AI expansion. Three anthropic researchers went public last night with chilling concerns about out-of-control AI. This warning, it could destroy humans this decade as Axios reports. Anthropic AI researcher Jacob Coxon wrote on X. After resigning Tuesday to sound the alarm, quote, The people building AI earnestly believe that it could kill us all by the end of the decade. This is not a marketing stunt. If anything, many executives and senior researchers will couch their phrasing in the press to sound sensible. But I hear the same people express fear privately. No other human activity poses this level of danger. Anthropic alignment science lead Evan Hubinger responded on X. Quote, Jacob is correct here. We really do earnestly believe AI could kill all humans. I personally think it is greater than 10% within the next decade. I believe Anthropic is trying its best. But we do not yet have a plan to solve alignment for superintelligence and are not clearly on track too. In more AI news, meta-share's got a boost on Wednesday after the company's latest artificial

4:06intelligence push. As reported by MarketWatch, the social media giant introduced Muse, a personal AI agent designed to help the average consumer. Meta described the tool as a widely available personal AI agent that is easy to use and can make people's lives easier by working on their behalf. One analyst called the Muse Agents a significant step toward justifying Meta's AI spending. Even as their shares got pummeled, companies like Salesforce Workday show financial strength. According to reporting from the Wall Street Journal, artificial intelligence is reshaping enterprise software companies, though at a significantly slower pace than early market panic suggested. While generative AI tools pose long-term competitive risks, established software vendors are insulating their businesses by embedding proprietary AI capabilities directly into their existing SaaS suites and retaining enterprise clients through deeply embedded workflow lock-in. And finally to China. According to reporting from the Wall Street Journal, domestic tourism has emerged as a rare

5:07$1 trillion bright spot in China's slowing economy as local consumers shift spending away from real estate and big-ticket retail toward travel and experiential leisure. Driven by expanded high-speed rail networks, target subsidies, and surging interest in domestic cultural landmarks, the travel boom is offering critical support to service sector employment across Chinese provinces. Tens of millions of foreigners visit each year, and domestic travel is rising, but some visitors are tight-fisted. Tomorrow brings one of the most important reports ahead of next week's FOMC in the Producer Price Index before the open. Consensus expectations call for Core PPI to rise 4.6% year-over-year. That's your risk reversal market matrix. Be sure to follow us to get alerts on new episodes every day. All of the articles mentioned on today's podcast can be found in the show description. For Guy Adamie and Dan Nathan's market analysis on these topics and more, watch Market Call

6:08on RiskRversals YouTube channel Monday through Thursday. Special thanks to our Data Provider FACSET for supporting our coverage. Story Curation by RiskRversal, Scripts by AI, Voice by 11 Labs, I'm Bronson. Thanks for listening.