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MarketWatch Top Storiesmarkets

AI capex could hit $1.6 trillion next year, says fund manager who sees more echoes of 1998 than the dot-com bust

MarketWatch Top Stories
Wednesday, August 12, 2026 at 9:35 AM
~4 min read
Inflation

Original Report

A T. Rowe Price fund manager thinks the hyperscalers can comfortably fund their investment spending, and moreover, derive high returns on that invested capital with a short payback schedule.

Glass House Analysis

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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