AI doubts drive bond rally as Meta, IBM flash warning signs

What happened: Renewed anxiety over the sustainability, mounting costs and commercial payoffs of AI pushed investors out of equities, particularly tech stocks (QQQ), and into government debt on Thursday. Why it matters: Rising AI capital costs raise concerns about the sustainability of AI investments and risk to credit ratings, while large enterprises are scrutinizing the real ROI of their AI spend and some are pushing back on aggressive budgets.

Renewed anxiety over the sustainability, mounting costs and commercial payoffs of AI pushed investors out of equities, particularly tech stocks (QQQ), and into government debt on Thursday.

Rising AI capital costs raise concerns about the sustainability of AI investments and risk to credit ratings, while large enterprises are scrutinizing the real ROI of their AI spend and some are pushing back on aggressive budgets.