Investors rotate to bonds as AI-driven US growth bets fade

Investors are trimming growth expectations and returning to bonds after a prolonged sell-off, driven by concerns that the US economy's over-reliance on AI-related tech spending creates fragility. The shift reflects a reassessment of the sustainability of the AI investment cycle and its contribution to growth. This marks a notable reversal in market positioning, with implications for equity valuations and rate expectations.

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