President Donald Trump and six leading tech executives signed an accord on Tuesday pledging to advance their artificial intelligence models safely, with Google CEO Sundar Pichai, Anthropic CEO Dario Amodei, Meta CEO Mark Zuckerberg, OpenAI President Greg Brockman, xAI CEO Elon Musk and Nvidia CEO Jensen Huang participating.
The accord stipulates that companies will implement robust internal controls to monitor models during training in areas such as cybersecurity and biosecurity, empower internal teams to ensure controls operate as intended, partner with external auditors, and designate independent board committees to oversee operations and auditor reports.
The accord remains voluntary and does not prescribe legal penalties for companies that do not implement the measures, though it does leave open the possibility that commitments could eventually be incorporated into laws or regulations. Trump described the pledge as "almost like a constitution" and "morally binding," adding that "there's going to be a tremendous self-policing aspect".
The 30-year Treasury bond yield climbed to a high above 5.6%, reaching a level not seen since June 2002. The 10-year Treasury yield topped 5.29%. Treasury yields edged higher on Monday as pressure on global government bonds resumed amid higher oil prices and inflation fears.
Traders pared back bets that the Federal Reserve will hike interest rates in October to roughly a coin flip from over 70% odds a day ago after New York Federal Reserve President John Williams said there was "no need for urgency" to raise rates. The next test will come from the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, scheduled for release on Wednesday.
Anthropic's IPO prospectus warns AI could pose existential risks as losses mount ahead of a $2 trillion listing. Anthropic has decided to list on Nasdaq for an IPO that could come as soon as October 2026 and potentially value the company at up to $2 trillion. Expectations still place an Anthropic IPO in 2026, but later in November.
Trump directed government agencies to use the term "super intelligence" instead of "artificial intelligence" when referring to the technology. The agreement, unveiled following a White House meeting with technology executives, is titled the White House Accord on Super Intelligence: Joint Commitment on Frontier Responsibilities. The accord marks a significant moment in Washington's efforts to shape the governance of rapidly advancing AI technologies.
Profitability moderated slightly in August with revenues continuing to exceed expenses, indicating small businesses remain financially resilient, while net payroll expansion stabilized at 18% year-over-year with median growth at 5%. The Paychex Small Business Employment Watch reported job growth at 99.15 in September with hourly earnings growth remaining below three percent at 2.78%.
The PCE inflation report due this morning will be crucial for Fed rate decisions, as 30-year Treasury yields above 5.6% signal persistent market concern about sticky inflation driven by elevated oil and energy costs. For operators managing debt, refinancing plans and equipment purchases, elevated yields and uncertain rate direction make it prudent to lock in favorable terms now before potential further increases. The recent pullback in October rate-hike expectations offers a brief window of clarity, but long-term borrowing costs remain elevated due to geopolitical oil pressures.
The White House AI safety accord signals that federal AI governance will emphasize voluntary industry oversight rather than prescriptive regulation—at least in the near term. Operators relying on AI tools should prepare for enhanced audit requirements and board-level scrutiny. Small businesses continue adding jobs at steady rates though wage growth remains modest at 2.78% annually, easing some payroll pressure even as profitability moderates and health-care and input costs remain squeezed. Focus on cash flow management as inflation and rates settle into a new equilibrium.