US Economy Shows Signs of Health as Markets Await Inflation Data

The US economy continues to show signs of health, despite concerns about rising yields and AI spending. Business activity grew at its fastest pace in over four years, while manufacturing data came in stronger than expected and jobless claims remained low.

Nvidia's biggest customers have been warned that servers containing its AI chips could become 15% more expensive due to soaring memory costs.

Ray Dalio has expressed concerns about America's finances, estimating a $2 trillion hole between revenue and spending. He recommends investors put around 10-15% of their portfolios into gold and 'a bit' of Bitcoin.

This week is expected to be significant for markets with key inflation data releases in Australia and the US.