RenMac Off-Script: Neocloudy With a Chance of Defaults*

RenMac breaks down the accelerating selloff in semiconductors, why Jeff sees signs of forced liquidation but isn't convinced the market has reached a durable bottom, and how deteriorating credit conditions are threatening the AI trade. The team also discusses why the Democratic midterm sweep could increase costs and delay data center construction, the growing financing risks facing leveraged neocloud providers, and whether nearly $900 billion in Anthropic commitments could create vulnerabilities across the AI ecosystem. Guest economist Guy Berger examines a slowly recovering labor market, why AI has yet to meaningfully disrupt employment, and how falling asset prices could threaten consumer spending and economic growth.