Overview

• Fed Chair Jerome Powell said AI appears to be affecting the labor force by making entry-level hiring tougher for recent graduates, though he called its impact uncertain.
• Employers added about 27,000 jobs per month from May through August, a sharp slowdown from last year’s pace.
• A Business Roundtable survey found 38% of large-company CEOs plan to cut headcount over the next six months while 89% expect stable or higher capital spending.
• AI-linked investment is powering financial gains, with the S&P 500 logging its 27th record of 2025 and spending on information processing equipment and software leading first-half GDP contributions.
• Tech leaders at a Wall Street Journal event described reorganizing around skills with fewer middle managers as some firms pull back unprofitable AI rollouts.