Viewpoint by Russell Investments

In this Market Week in Review, Russell Investments' Director and Senior Portfolio Manager Alex Cousley examines why AI stocks sold off sharply following the U.S. midterm elections and whether market volatility could create investment opportunities.
Alex discusses proposed data-center restrictions, risks to semiconductor demand, and why Russell Investments' cycle, valuation and sentiment framework continues to point to relatively healthy economic fundamentals.

Key takeaways:
• Concerns about potential restrictions on new U.S. data centers contributed to a sharp sell-off in AI-related stocks.
• U.S. economic growth and corporate earnings remain supportive, even as market sentiment moves toward oversold levels.
• Prolonged market weakness could create risks for highly leveraged AI companies and consumer spending.

Questions answered:
Why did AI stocks fall after the U.S. midterms?
Investors are concerned that restrictions on new data-center development could slow future AI infrastructure spending and semiconductor demand.
Could the stock market sell-off create buying opportunities?
Russell Investments is monitoring sentiment for signs of excessive pessimism, although its indicators have not yet reached oversold extremes.
What risks could make the sell-off worse?
Potential financing difficulties among highly leveraged AI companies and the effect of a prolonged equity decline on household spending.

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#MarketWeekInReview #AIStocks #StockMarket #MidtermElections
[Retain existing disclosures below this section.]
 
 
Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: November, 2026

In this Market Week in Review, Russell Investments’ Senior Portfolio Manager and Head of Sustainable Investing Kris Nelson examines why markets are becoming more selective about AI investment.
Kris looks at how investors are assessing the ability of major technology companies to monetize heavy AI spending, alongside resilient U.S. economic growth, persistent inflation and the latest central-bank decisions.

Key takeaways:
• Investors are becoming more selective about which companies can turn heavy AI investment into revenue and cash flow
• Strong economic growth and resilient labor data continue to support the U.S. outlook
• Inflation remains above the Federal Reserve’s target, keeping the prospect of another rate hike in focus

Questions answered:
Why are investors becoming more selective on AI?
Markets are focusing more closely on monetization, cash flow and how quickly heavy AI investment can generate returns.
Is the U.S. economy still growing strongly?
Yes. Third-quarter growth accelerated, supported by resilient consumers and business investment.
Could the Fed raise rates again?
Inflation remains above target and markets continue to see another rate increase as possible.

Explore more Market Week in Review:
https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7392305653110960128
#ArtificialIntelligence #FederalReserve #useconomy 

 
Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: October, 2026

Disclosures

These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.

Investing involves risk and principal loss is possible.

Past performance does not guarantee future performance.

Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.

This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.

The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.

Indexes are unmanaged and cannot be invested in directly.

Copyright © Russell Investments Group LLC 2026. All rights reserved.

This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.

CORP-13022
Date of first use: October, 2026

In this Market Week in Review, Russell Investments’ Global Chief Investment Strategist Paul Eitelman, CFA, examines the tug of war between hotter U.S. inflation and renewed concerns around the artificial intelligence investment cycle.
Paul looks at why stronger inflation data keeps another Federal Reserve rate hike in play, why investors are questioning returns and financing risks across the AI buildout, and why Treasury yields fell despite hotter inflation.

• Hotter U.S. inflation keeps another Federal Reserve rate hike in play
• Renewed concerns around AI investment and financing pressure weighed on technology stocks
• Falling Treasury yields despite hotter inflation highlight the market’s flight to safety

Questions answered:
Will the Fed raise rates again?
Sticky inflation keeps another hike in play, although the timing remains uncertain.
Why are AI stocks under pressure?
Investors are asking whether large capital investments are generating sufficient returns, particularly as financing costs remain elevated.
Why did Treasury yields fall despite hotter inflation?
Risk aversion around AI drove demand for government bonds, outweighing the immediate inflation signal.
Read the full analysis:
Explore more Market Week in Review:
https://www.linkedin.com/newsletters/market-week-in-review-7392305653110960128/
#ArtificialIntelligence #FederalReserve #PCE #aibuildout
Chapters:
00:00 Inflation and AI shape the week
00:30 Hotter inflation and the Fed outlook
02:00 AI investment comes under scrutiny
03:05 Why Treasury yields fell
03:30 U.S. midterms move into focus

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: October, 2026

In this Market Week in Review, Russell Investments’ Senior Portfolio Manager and Head of Global Sustainable Investing, Kris Nelson, examines why softer U.S. labor data has not been enough to bring long-term Treasury yields meaningfully lower.
The discussion looks beyond the jobs report to the other forces shaping markets, including renewed oil-price volatility, fiscal concerns and high expectations for AI-related earnings.


Key takeaways:
• U.S. labor data reduced expectations for an immediate Fed rate hike
• Oil prices and long-term bond yields remain elevated
• Strong AI-related earnings, but investor expectations remain high


Questions answered:
Why are Treasury yields still high despite softer jobs data?
Energy, inflation and fiscal risks continue to influence long-term rates.
Could the Fed hold rates steady?
Cooling labor data has reduced the urgency for an immediate hike.
Why didn’t semiconductor stocks rally on strong earnings?
Investor expectations are already high, meaning strong results may simply meet what markets have priced in.
Read the full analysis:
[Insert article URL]
Subscribe for weekly market insights
https://www.linkedin.com/newsletters/market-week-in-review-7392305653110960128/
#Airearnings #BondYields #FederalReserve

 

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: October, 2026

Description:
In this Market Week in Review (MWIR), Russell Investments’ Co-Head of Global Fixed Income Riti Samanta examines what the AI investment boom means for bond markets, including its potential impact on real interest rates, U.S. Treasury yields and corporate credit.
 
Key takeaways:

- Treasury yields rise amid shifting views on policy, inflation and growth

- AI investment may lift real rates, but Treasury crowding-out evidence remains limited

- Strong fundamentals and demand support rising AI-related credit issuance
 

Questions answered:
What does the AI investment boom mean for bond markets?
AI investment is increasing financing needs across the economy and may contribute to higher real interest rates. It is also generating significant issuance across investment-grade, high-yield and securitized credit markets.
 
Is AI investment pushing U.S. Treasury yields higher?
AI investment may be contributing to higher real rates through increased demand for labor, energy, equipment, construction and capital. However, there is currently limited evidence that AI-related corporate borrowing is directly crowding out demand for U.S. Treasuries.
 
Why haven’t credit spreads widened despite higher issuance?
Much of the AI-related issuance has come from large, highly rated technology companies with strong profitability, interest coverage and balance sheets. Robust investor demand for investment-grade credit has also helped absorb the additional supply.
 
How is the AI buildout being financed beyond corporate bonds?
Data centers and other AI infrastructure are increasingly tapping high-yield and securitized markets, including asset-backed securities and commercial mortgage-backed securities. These markets could play a growing role in financing the broader AI buildout.
 
Explore more Market Week in Review:
Market Week In Review
 
Subscribe to Russell Investments for weekly market insights:
https://www.linkedin.com/newsletters/market-week-in-review-7392305653110960128/
#MarketWeekInReview #ArtificialIntelligence #BondYields #FixedIncome #treasuries 



Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of First use: September, 2026

In this Market Week in Review (MWIR), Russell Investments’ Director and Senior Portfolio Manager Alex Cousley examines the Federal Reserve’s latest interest-rate hike and what it could mean for U.S. monetary policy, government bonds and global equity markets.
The discussion looks beyond the headline rate increase to the underlying inflation picture. Wage growth and housing remain relatively subdued, suggesting today’s inflation environment looks different from 2021 and 2022 and reducing the likelihood of a prolonged Federal Reserve hiking cycle.
Alex also examines the outlook for the Bank of England, continued weakness in Chinese credit demand and why Russell Investments’ cycle, valuation and sentiment framework still points to a constructive backdrop for global equities.

Key takeaways:
• The Federal Reserve raised rates, with one more hike expected before a prolonged pause
• U.S. inflation pressures look different from 2021 and 2022, supporting a gradual disinflation outlook
• Resilient earnings and neutral investor sentiment continue to support the equity market backdrop

Questions answered:
Why did the Federal Reserve raise interest rates?
Inflation has picked up, partly due to higher energy prices, prompting the Fed to tighten policy. However, underlying wage and housing pressures remain relatively contained.
Will the Fed keep raising rates?
Russell Investments expects another rate increase may occur before the end of 2026, followed by a prolonged pause as inflation gradually moderates.
Are U.S. government bonds attractive?
Higher yields have improved valuations in U.S. government bonds, although investor sentiment has not yet reached levels that would suggest a strong tactical buying opportunity.
Why is China’s economy slowing?
Weak property markets, subdued consumer confidence and limited appetite for business investment are contributing to softer household and corporate credit demand.
What is supporting global equity markets?
Resilient economic activity, robust corporate earnings, improving profit margins and neutral investor sentiment continue to provide a constructive backdrop.
Read the full analysis:
[Insert Russell Investments article URL]
Explore more Market Week in Review:
Market Week In Review
Subscribe to Russell Investments for weekly market insights.
[Insert MWIR LinkedIn newsletter URL]
#MarketWeekInReview #FederalReserve #InterestRates #Equities #Chinaeconomy

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: September, 2026

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: September, 2026

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: September, 2026

Disclosures
These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page.
Investing involves risk and principal loss is possible.
Past performance does not guarantee future performance.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
This material is not an offer, solicitation or recommendation to purchase any security. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.  The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Please remember that all investments carry some level of risk. Although steps can be taken to help reduce risk it cannot be completely removed. They do no not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.
Indexes are unmanaged and cannot be invested in directly.
Copyright © Russell Investments Group LLC 2026. All rights reserved.
This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.
CORP-13022
Date of first use: August, 2026