Market only starting to price transition from software 1.0 (CPU) to 2.0 (GPU/agentic). Competition will decelerate incumbents' top line. Margin compression not yet priced - AI software has real marginal costs per agentic action. Multiple compression will follow lofty valuations.

CPI print more important than normal - no clear need for Fed to cut after jobs report. Key risk is inflation goes up, steepening yield curve, pressuring multiples. Equities can still work but focused on companies leveraged to high structural growth that can weather shock.