The Zhitong Finance App learned that last week, the market was dominated by two major headlines. First, Meta (META.US) launched the Muse smart device and supporting AI hardware Charm at the Connect conference. Related products quickly climbed to the top of the Apple (AAPL.US) App Store and Google (GOOGL.US) Play Store, becoming the new variable receiving the most attention in the AI application layer. Second, the Chinese President paid a state visit to the US. Investors closely assessed its potential impact on the AI trading pattern and the relationship between the two major economies of China and the US. Despite intense headlines and mixed market forces, the overall performance of US stocks was stable last week, and major stock indexes did not fluctuate sharply due to these events.
Coming this week, the market focus will shift from politics and product announcements to earnings and macro data. After the US stock market on Wednesday EST, memory chip giant Micron Technology (MU.US) will announce its fourth fiscal quarter results. This is seen as a key point in testing whether AI infrastructure transactions can continue. In the past two weeks, transactions related to AI infrastructure have fluctuated, and memory chips have become one of the most prominent bottlenecks in the expansion of AI computing power. Investors will focus on finding evidence that demand for memory continues to be strong.
In addition, OpenAI is expected to preview GPT-6 Cyber and launch managed smart dev-related products on DevDay in San Francisco on Tuesday; US President Trump, House Speaker Mike Johnson, and technology CEOs will meet to discuss AI on September 29, local time. Together, the three form a triple verification of AI transactions from model and supervision to profit.
At the macro level, this week is a typical “employment and inflation week.” The Federal Reserve's preferred inflation indicator PCE will be released on Wednesday, and the September non-farm payrolls report will be released on Friday. The two will jointly determine the market's pricing for the Federal Reserve's October meeting and even the 2026 policy path. In addition, JOLTS job vacancies, ISM manufacturing index, Eurozone CPI, and RBA decisions will also distract market attention.
Meta's Muse Moments
Last week, the Meta Connect conference became the focus of investors' attention. Meta CEO Mark Zuckerberg outlined the company's vision for the future, with Muse at the core. The social giant's new AI smart device quickly topped the Apple App Store and Google Play Store, and Zuckerberg said it has been used by millions of people. During the conference, Meta's Chief AI Officer, Alexander Wang, demonstrated multiple use cases for Muse, from routine tasks such as scheduling meetings to more complex operations such as negotiating better rates for cable TV services and completing purchases across multiple services.
Meta is also introducing Muse into next-generation Meta VR glasses, where users can talk to the digital avatar of an intelligent body; at the same time, it also launched Muse Charm, a dedicated handheld device that allows users to interact with Muse agents without a smartphone or smart glasses. The company said it will monetize it by extracting small shares from transactions completed by Muse agents.
This week, the market will see if Meta's momentum continues. If Meta is to win over a wider range of users beyond early adopters and AI supporters, it must convince people that it takes privacy and security seriously. According to reports, a security flaw has been discovered in Muse, which may affect the security of user data and virtual environments. To this end, Meta is preparing to strengthen risk alerts and add more prominent warning alerts.
William Blair analyst Ralph Schackart points out that as consumers increasingly trust AI systems to handle sensitive tasks such as financial information, communications, calendars, and purchasing decisions, trust may become an important competitive differentiator.
Micron, OpenAI and Trump AI Talks
Micron Technology will release its Q4 earnings report after the market on Wednesday. As the leading manufacturer of DRAM and NAND storage in the US, Micron is seen as one of the most direct beneficiaries of AI memory requirements. Investors will look for evidence to determine whether the AI-driven memory boom can support higher levels of revenue, profit margins, and long-term demand visibility.
The company previously disclosed that revenue for the third fiscal quarter reached a record of $41.46 billion, up 346% year over year; non-GAAP gross margin increased to 84.9% from 74.9% in the previous quarter. HBM4 has entered the large-scale mass production stage on major customer platforms, and the company has simultaneously sent qualifying samples to multiple customers. For FQ4, management guided revenue of $50 billion ± $1 billion, non-GAAP gross margin of about 86%, and non-GAAP earnings per share of $31 ± $1, which means that demand for AI infrastructure continues to drive up high-value memory content.
Micron also recently announced management changes: Manish Bhatia was promoted to President and Chief Operating Officer, and Scott DeBoer was promoted to President and Chief Technology and Product Officer to strengthen the leadership structure in the production capacity expansion and product development phase. Micron said it has signed 16 strategic client agreements, 14 of which represent a minimum cumulative revenue of approximately $100 billion during the contract period. These agreements cover DRAM, HBM, and NAND, and span data center, consumer, automotive, and industrial markets. Currently, Wall Street maintains a consistent “strong buy” rating for the stock.
OpenAI's developer conference (DevDay 2026) is also appearing along with Micron's earnings report this week. According to reports, the AI giant is expected to preview GPT-6 Cyber, a cybersecurity-focused model, and launch a new tool to help customers deploy this product more securely and automatically at the conference on Tuesday. According to several people familiar with the matter, GPT-6 Cyber is the fourth cybersecurity model released by OpenAI this year. It may be officially unveiled on DevDay. At the same time, the company is also planning to launch a dozen or more other products. In OpenAI's application-based cybersecurity project DayBreak Red, limited customers have obtained alpha testing rights for GPT-6 Cyber.
At the time of the press conference, the development of the AI industry was in an extremely complicated situation. OpenAI CEO Sam Altman and rival Anthropic CEO joined industry leaders earlier this month in calling for a slowing down of AI development and strengthening security measures. Cybersecurity is becoming one of the fastest-growing markets for AI, and tech companies are developing tools to deal with threats and restrain uncontrolled AI agents. OpenAI has warned that Astra, the flagship model of the GPT-6 series, will sometimes try to evade human supervision; the Australian side also said on Thursday that an OpenAI agent broke through the government health data portal in June. These events have brought more attention to OpenAI's upcoming secure deployment products.
At the policy level, US President Trump, Republican Speaker of the House Mike Johnson, and technology CEOs will hold an AI conference on September 29. The world's leading AI companies previously warned that AI poses a risk to humans and called on governments to cooperate to manage this increasingly powerful technology, and it is difficult for governments to keep up with the rapid evolution of AI in terms of regulation. As the two leading forces in AI development, the US and China have taken different paths: Trump believes that the US does not need special supervision of new AI; China enforces rules on AI algorithms and training data, including requiring clear labeling of AI generated content. Trump said during the general debate at the UN General Assembly that he “rejects any attempt to construct a globalist plan to control AI,” saying the technology is amazing, but the US will remain cautious.
PCE and Non-Agriculture: A Double Test of Inflation and Employment
On the macroeconomic side, the most important thing this week is PCE inflation and September's non-farm payrolls report.
The Federal Reserve's preferred inflation indicator, the August PCE Price Index, will be released on September 30. According to compiled data, the market expects PCE to rise 3.8% year on year in August, faster than the previous value of 3.7%; core PCE excluding food and energy is expected to rise from 3.3% to 3.4%. Actual personal consumption adjusted for inflation is expected to increase 0.5% month-on-month, the biggest monthly increase in more than a year. If consumer demand remains strong and inflation heats up again, the Federal Reserve will face a more difficult policy environment, and the difficulty of withdrawing from austerity will increase markedly.
In terms of employment, the September Non-Farm Report will be released on October 2. In August, 162,000 new non-farm payrolls were added, about three times the market's forecast of 53,000. This set a very high threshold for the September data. Current market expectations are clearly divided: the general forecast is about 90,000 to 100,000 people, BNP Paribas predicts 90,000 people, and Bank of America is more cautious, predicting only 60,000 people. Bank of America economist Aditya Bhave pointed out that if the September data falls short of expectations, there should be no surprise, as the unusually favorable seasonal factors in August may cause a backlash. The unemployment rate is expected to remain at 4.1%, the lowest level in a year, indicating that although employment momentum has slowed, the labor market has not deteriorated rapidly.
Optimism also exists. BNP Paribas and senior US economist Andrew Husby believe that as the Federal Reserve's austerity cycle progresses, the momentum of the US economy may push the unemployment rate down further in early 2027, and the market may underprice the risk of a decline in the unemployment rate.
But there is a rift between consumer sentiment and employment data. The University of Michigan's consumer confidence index for September fell to 48.1 from 51.7 in August. Although slightly higher than market expectations of 47.5, consumer expectations for personal financial conditions fell by about 10%. Joanne Hsu, head of the investigation, said that high fuel prices and renewed trade disputes have led to a sharp decline in short-term business prospects.
Looking at interest rate futures pricing, after the recent rate hike, the market expects the probability that the Federal Reserve will raise interest rates by another 25 basis points at the October meeting is about 70%. If PCE and the non-agricultural sector are basically in line with expectations, that is, inflation rebounds moderately and employment slows but does not collapse, the reasons for austerity will continue to be strengthened. Other US data this week include JOLTS job vacancies on September 29 and the ISM manufacturing index on October 1, which are expected to confirm the expansion of the US economy and inflationary pressure. Some observers have warned that global financial market fluctuations may increase.
Overseas, the Eurozone CPI for September will be released on October 2. It is expected to rise to 3.7% year on year, the highest in three years. Energy prices are the main driver, and market speculation about the ECB's third rate hike this year is heating up. The Reserve Bank of Australia will hold a monetary policy meeting on September 29. All four major Australian banks expect to raise interest rates by 25 basis points to 4.6%. This will be the fourth time in the year. Although Australia's unemployment rate rose to 4.6% in August, indicating that the labor market has cooled down, the global interest rate environment and inflationary pressure still supported the Reserve Bank of Australia to maintain austerity. Some analysts expect another increase in November. If five interest rate hikes are implemented during the year, the benchmark interest rate will rise to the highest since the end of 2008. Indonesia and South Korea will release CPI on October 1 and October 2, respectively. The Middle East conflict will push up international oil prices and El Niño disrupt food prices, which will be key variables facing inflation in Asia.