BND Scope: Issue 9 – A Wave of Investments into the U.S.

This week’s agenda in the U.S. was packed. While artificial intelligence remains Wall Street’s darling, markets saw a notable rotation across sectors. Consumers continue to spend, but inflation worries are resurfacing. Meanwhile, debates over the Fed’s rate cuts and Trump’s tariffs are keeping tensions high. And alongside all this, massive investment pledges announced as part of Washington’s “bring production home” strategy became one of the most talked-about topics of the week.

OpenAI CEO Sam Altman has warned of a potential bubble in artificial intelligence, yet Wall Street remains highly optimistic. Analysts believe investments have the power to drive markets higher for several more years.

Corporate earnings are strong, and giants like Microsoft, Meta, and Alphabet are ramping up investments. For this reason, short-term volatility is not seen as a threat to long-term gains. Analysts even say, “This is not 1999, it’s 1996,” pointing to the early years of internet technologies before the dot-com bubble peaked, suggesting AI investments are still in their early stages.

Market Rotation and Sectoral Shifts

The AI Debate on Wall Street

Not only big tech but also health care, construction, and small- to mid-cap stocks have seen momentum. This points to a healthier and more balanced rally in the markets.

The housing market, however, tells a different story. With high interest rates and tariff pressures, the post-pandemic housing boom is gradually fading. This slowdown is particularly evident in the southern and western states.

The Fed, Rates, and Tariffs

Fed Governor Michelle Bowman says three rate cuts would be appropriate this year. Markets agree, with a September cut already being priced in.

Trump’s tariffs, however, continue to weigh on growth and squeeze companies. From automakers to retailers, many sectors are struggling to manage the added costs. For automakers in particular, the burden is heavy, and higher costs will inevitably reach consumers.

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Nick Maggiulli, COO of Ritholtz Wealth Management and author of The Wealth Ladder, argues that a new form of “economic stratification” is taking place in the U.S. According to him, society can no longer be neatly divided into lower–middle–upper classes; income and wealth distribution now paints a much more fragmented picture.

His framework divides households into six wealth levels:

• Under $10,000

• $10,000 – $100,000

• $100,000 – $1 million

• $1 million – $10 million (“upper middle class”)

• $10 million and above

• Ultra high-net-worth individuals

The most striking trend here is the rapid growth of the upper middle class. In 1989, they made up just 7% of the population, but today they represent around 18%. In other words, million-dollar households are no longer rare.

Yet there’s a paradox: while these people are statistically “wealthy,” many don’t feel rich. Why? Because in areas where they compete—housing, education, healthcare, luxury consumption—prices have risen so much that “when everyone is wealthy, no one feels wealthy.” Maggiulli says this has changed consumption patterns too. With more purchasing power, this group is driving up prices for travel, private education, and premium products.

In short, one of the U.S. economy’s strangest paradoxes is unfolding: wealth is growing, but satisfaction is shrinking. And that’s reshaping consumer behavior and demand balances across markets.

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The New Paradox of America’s Middle Class

Conclusion:

We close this week’s bulletin with a special file shared by the White House. President Donald J. Trump’s pledge to revitalize American industry in his second term has triggered trillions of dollars in new investment commitments. From technology to pharmaceuticals, automotive to energy, global giants are building factories, expanding R&D hubs, and creating tens of thousands of new jobs across the country.

Let’s look at the numbers:

Major commitments from companies:

• Apple → $600 billion (AI server factory in Texas, 20,000 R&D jobs)

• NVIDIA → $500 billion (AI supercomputer production in the U.S.)

• Micron Technology → $200 billion (new chip fabs)

• IBM → $150 billion (manufacturing and growth operations)

• Johnson & Johnson → $55 billion (manufacturing and R&D)

• Amazon → $20 billion (cloud infrastructure, 100,000 new jobs in small towns)

Total corporate investment commitments: ~$2.7 trillion

Commitments from countries are even larger:

• UAE → $1.4 trillion

• Qatar → $1.2 trillion

• Japan → $1 trillion

• Saudi Arabia → $600 billion

• South Korea → $450 billion

• Bahrain → $17 billion

Country-level total: ~$4.7 trillion

Overall figures:

Companies: ~$2.7 trillion

Countries: ~$4.7 trillion

Total investment commitments: ~ $7.4 trillion

In short, Washington’s “bring production home” strategy is bearing fruit. Both tech giants and traditional industries are redirecting their investments to U.S. soil. This shift is set to reshape not only the labor market but also global supply chains in the years ahead.

For the full list, see: White House – Trump Effect Investment List

Special Report: TRUMP EFFECT – An Investment Boom in the U.S.

Companies are making massive investment commitments in the U.S., the AI boom shows no sign of slowing, market rotation signals are emerging, consumer spending remains strong yet cautious, while the Fed and tariffs continue to pose the biggest risks.