Bad news for the economy and investors: growth is slowing, inflation is running hot, the Middle East war is spreading, and big AI bets are starting to unravel.

• US growth slowed and came in below what economists expected, while inflation is running at almost double the growth rate.
• Much of that growth leans on AI and data-center spending, which many now call circular and unsustainable.
• The Iran conflict is widening, with new strikes and a drone hit on ships at an Egyptian port, and Trump is reportedly furious over the lack of a strategy.
• Government borrowing costs hit a 19-year high while the country keeps spending more than it takes in, leaving little room to fund the war.
• AI stocks are tumbling, hedge funds are facing margin calls, and Meta's free cash flow collapsed as it pours money into AI and data centers.

Outlook: Expect more market stress as AI bets deflate and inflation stays high, with no clear end to the war or the economic slowdown in sight.