AI Profits Raise New Cash Flow Questions

The S&P 500 is pushing to new highs, but the profit boom behind the rally is raising questions about how much of the AI story is backed by durable cash flow.Mike Armstrong and Marc Fandetti break down why earnings growth across Big Tech looks impressive on the surface, why free cash flow matters more than headline profits, and whether the massive investment in AI infrastructure will actually benefit the hyperscalers spending the money. They also discuss the latest JOLTS report, why the labor market looks like a low-hire, low-fire environment, and what Friday’s jobs report could mean for the Fed. Plus, they explain why the U.S. stepped in to support Japan’s yen, how currency intervention could affect bond markets, and why Kevin Warsh’s approach to the Fed is forcing bond traders to rethink how they price long-term rates.