Markets are ending the week in full euphoria mode. The S&P 500 and Nasdaq hit fresh record highs as investors continue piling into AI stocks despite rising inflation, surging bond yields and escalating geopolitical tensions in the Middle East. Oil prices climbed back above $100 per barrel, Japanese yields pushed far beyond levels once considered dangerous for global carry trades, and US consumers are increasingly struggling with debt repayments. Yet none of it seems capable of slowing the AI rally.
In this episode, we dive into why investors are ignoring the macro warning signs, how massive AI spending is increasingly financed through debt markets, why rising yields could become a real problem for Big Tech valuations, and whether the market is underestimating the risk of another period of sticky inflation.
Watch the full episode to find out more!
Intro0:58 US/China summit went well!
1:43 Markets rallied, but fundamentals are alarming
4:27 What is the Biggest Risk for Big Tech?
