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AI Spending Is Helping Push Long-Term Rates Higher, Warsh Says
Barrons.com8d agoneutral
AI Spending Is Helping Push Long-Term Rates Higher, Warsh Says

Massive cloud providers are spending big to build out the infrastructure needed to power artificial intelligence. Warsh said that spending is one reason long-term bond yields are so high. "The surge in capital expenditures, which I referenced in my remarks, is real, and the so-called hyperscalers are out of the market raising funding, and so the competition for capital is real, and I think it partly explains the increase in yields," Warsh said.

Dow Falls 700 Points, S&P 500 Slides
Barrons.com8d agobearish
Dow Falls 700 Points, S&P 500 Slides

Stocks ticked lower during Fed Chairman Kevin Warsh's press conference. The Dow Jones Industrial Average fell 1.4% or 702 points. The S&P 500 fell 0.7% as the Nasdaq Composite slipped 0.3%, erasing gains seen earlier in the session.

It's a Bullish Rate Increase, for Now
Barrons.com8d agoneutral
It's a Bullish Rate Increase, for Now

Markets had widely expected the Fed to raise interest rates on Wednesday, and investors seem to be happy that the central bank followed through on those expectations. Looking at the so-called "dot plot," it looks like the Fed is embarking on short adjustment cycle, with the majority of officials only penciling in one interest rate hike later this year and no movement in 2027. Officials moved up their forecast for economic growth and lowered their projections for unemployment rate.