AI Fantasy Fades as Wall Street Reels From Real-World Rate Jump
- Higher cost of capital detrimental to stock valuations: Nguyen
- Powell risks overplaying optimism as real yields rise: Lyngen
For stock investors for much of this year, the trillion-dollar AI promise has masked a big threat in this era of Federal Reserve hawkishness: Real-world borrowing costs have jumped across Corporate America.
Now Wall Street is fretting over the monetary danger in a week that Jerome Powell signaled his resolve once again to keep the policy stance tight — sparking a rout across Big Tech and beyond.