Investors brace for US jobs and inflation reports as AI fears persist

Markets have reached the midpoint of a highly consequential week amid significant volatility, as investors brace for key economic data releases in the US. US retail sales data has already raised questions. It came in at an underwhelming level, with buying flatlining in December despite the festive season. This suggests the economy may be struggling under the weight of the current Federal Reserve base rate of 3.5%–3.75%. This week will also see both the key metrics in steering Fed policy updated in the form of the jobs report and inflation read-out. January jobs data will be released today (Wednesday 11…