Key Takeaways
- U.S. online Black Friday sales hit a record $11.8 billion, a 9.1% increase year-over-year, significantly boosted by AI-powered shopping tools.
- Entry-level job postings have fallen 16% year-over-year, raising concerns for young workers as AI automation impacts the labor market, with youth unemployment reaching 10.5%.
- Japan is dedicating approximately $1.6 billion in an extra budget to bolster its AI and semiconductor industries, part of a long-term strategy to regain technological leadership.
- A Coinbase-funded Universal Basic Income experiment is distributing $12,000 in USDC cryptocurrency to 160 low-income New Yorkers, exploring digital assets for social aid.
- Treasury Secretary Scott Bessent attributes a recovering bond market and restored White House strength to President Trump's economic policies, noting a 6% year-to-date return for the U.S. Treasury market.
Record Black Friday Sales Driven by AI as Consumer Spending Shifts Online
American shoppers demonstrated robust online spending on Black Friday, setting a new record of $11.8 billion, an impressive 9.1% increase from last year, according to Adobe Analytics. This surge was significantly influenced by AI-powered shopping tools, which saw an 805% increase in driven traffic to U.S. retail sites compared to the previous year. The widespread adoption of AI tools like Walmart's Sparky or Amazon's Rufus has enabled consumers to efficiently compare prices and secure discounts amidst persistent inflation and tighter budgets.
Mobile shopping played a crucial role, accounting for over half of all sales. Popular categories for Black Friday purchases included video game consoles, electronics, and home appliances. While online sales soared, in-store traffic remained subdued, reflecting a broader consumer shift towards digital platforms for holiday shopping. Looking ahead, Cyber Monday is projected to continue this trend, with an anticipated $14.2 billion in sales, marking it as the largest online shopping day of the year.
Labor Market Concerns Rise as Entry-Level Job Postings Decline
The U.S. labor market is showing signs of strain for young workers, with entry-level job postings experiencing a 16% year-over-year decline. This trend is particularly worrying for recent graduates and those aged 16 to 24, whose unemployment rate climbed to 10.5% in August, the highest level since late 2016, excluding the pandemic period. Artificial intelligence-powered automation is identified as a key factor in this shift, as companies become more efficient and increasingly prioritize experienced professionals over entry-level hires.
Platforms like Handshake, a popular resource for entry-level job seekers, have reported a 15% reduction in listings compared to the last academic year, while the number of applications per job has risen by approximately 30%. This indicates a growing mismatch in the labor market, with fewer opportunities for those seeking to gain initial work experience. Experts suggest that while AI may create new jobs higher up the organizational chart, it is automating away many rote entry-level tasks, posing a significant challenge for the future workforce.
Japan Boosts AI and Semiconductor Development with $1.6 Billion Investment
Japan is making a significant move to strengthen its technological competitiveness, announcing an extra budget allocation of approximately ¥252.5 billion (US$1.6 billion) to advance its artificial intelligence (AI) and semiconductor industries. This investment is part of a larger strategic initiative that has seen Japan commit around ¥5.7 trillion (US$36.5 billion) since 2021 to revive its semiconductor sector and reduce reliance on foreign supply chains.
The funding will support key projects, including the domestic chip venture Rapidus, which aims to mass-produce cutting-edge 2-nanometer chips by 2027, as well as facilities by Taiwan Semiconductor Manufacturing Co. (TSM) in Kumamoto and Micron Technology Inc.'s (MU) factory in Hiroshima. The Ministry of Economy, Trade and Industry (METI) is also seeking funds to bolster Nippon Export and Investment Insurance and to secure national stockpiles of rare earths, crucial for high-tech manufacturing, further reducing dependence on China. This strategic shift towards more stable, long-term funding through regular budgets underscores Japan's commitment to becoming a global leader in these critical technologies.
Coinbase-Funded Crypto UBI Experiment Launched in New York
In a novel initiative exploring the potential of digital assets for social welfare, a pilot Universal Basic Income (UBI) program funded by Coinbase (COIN) is distributing $12,000 in USDC stablecoin to 160 low-income residents in New York. The program, administered by the charity GiveDirectly, draws inspiration from traditional UBI experiments and aims to assess the effectiveness of cryptocurrency in providing unconditional financial support and improving financial stability for vulnerable populations.
The total funding for this project, approximately $2.6 million, originates from Coinbase's now-defunct GiveCrypto program. Participants will receive their payments in two stages: an initial lump sum of $8,000, followed by five monthly installments of $800. This experiment represents a significant step in bridging traditional social aid with blockchain technology, potentially paving the way for faster and more transparent payment methods in future social programs.
Bessent Touts Trump's Economic Leadership Amid Bond Market Recovery
Treasury Secretary Scott Bessent has credited President Trump's economic policies for a recovering bond market and a restoration of White House strength. Speaking at the New York Fed's Treasury Market Conference, Bessent highlighted that the U.S. Treasury market has been the best-performing developed bond market this year, achieving 6% in total returns year-to-date, its strongest performance since 2020. He emphasized the critical role of Treasury yields in setting the global risk-free rate, which in turn influences a wide range of financial instruments, from bank loans to home mortgages.
Bessent also outlined the administration's plans for regulatory adjustments aimed at enhancing market liquidity, including a revamped Treasury buyback program. Furthermore, he projected a potential tenfold growth in the stablecoin market by the end of the decade, attributing this to the innovation fostered by the GENIUS Act. These statements underscore the administration's focus on maintaining a robust and liquid Treasury market as a cornerstone of economic affordability and stability.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.