Wall Street on edge over Fed’s key inflation gauge

Google’s Gemini problem
In a memo to employees, Google CEO Sundar Pichai addressed the company’s artificial intelligence blunders. This comes after the tech giant was forced to take its Gemini image-generation feature offline for further testing. Pichai called the issues “problematic” and said they “have offended our users and shown bias.”  

Apple bets big on AI
Apple CEO Tim Cook said the iPhone maker is “investing significantly” in artificial intelligence, while teasing a major announcement which he gave little details of. “Later this year, I look forward to sharing with you the ways we will break new ground in generative AI, another technology we believe can redefine the future,” Cook said.

Disney’s India merger
Walt Disney and Indian conglomerate Reliance will merge their Indian businesses in a $8.5 billion joint venture. Reliance, led by Asia’s richest man, Mukesh Ambani, will control the JV and inject $1.4 billion into its growth strategy, upon completion of the transaction.

[PRO] A lesser-known pharma standout
Investors have been piling into major weight-loss drug manufacturers like Eli Lilly and Novo Nordisk. But fund manager Freddie Lait picked a lesser-known firm that also stands out: McKesson Corp — the U.S. pharmaceuticals distribution company. Calling the company an “exciting idea,” Lait noted that the 100-year-old business is “very defensive and very diversified.”

Wall Street is bracing for a key inflation gauge that will affect investors’ view on interest rates.  

All eyes will be on the personal consumption expenditures reading for January out today — the Fed’s favorite inflation indicator. Investors are hoping to see data that signals inflation is finally easing.

Fed officials have made it clear they want to see more evidence of disinflation before committing to rate cuts.