Nasdaq hits record, yields climb
7h
U.S. Treasury yields climbed to their highest level since 2002, while the Nasdaq hit a record as artificial-intelligence investment enthusiasm offset bond-market concerns.
AI Versus Everything Else
paulkrugman.substack.com/p/ai-versus-...
paulkrugman.substack.com/p/ai-versus-...
AI Versus Everything Else
The hyperscaler boom is crowding out other investment
paulkrugman.substack.com
October 6, 2026 at 1:18 PM
AI Versus Everything Else
paulkrugman.substack.com/p/ai-versus-...
paulkrugman.substack.com/p/ai-versus-...
Reposted by Albert Weale
My newsletter asks and answers the question: why are bond yields so high?
There are many charts....
www.ft.com/content/a616...
There are many charts....
www.ft.com/content/a616...
October 6, 2026 at 11:45 AM
My newsletter asks and answers the question: why are bond yields so high?
There are many charts....
www.ft.com/content/a616...
There are many charts....
www.ft.com/content/a616...
Just Published: Stock market development boosts economic growth, where the positive effects are bigger for advanced economies (emerging countries) with stronger (weaker) institutions. doi.org/10.1016/j.bir.2025....
October 6, 2026 at 11:30 AM
Just Published: Stock market development boosts economic growth, where the positive effects are bigger for advanced economies (emerging countries) with stronger (weaker) institutions. doi.org/10.1016/j.bir.2025....
by Daniel W. Drezner Reposted by Charles T. Mathewes
“Massive spending on data centers is crowding out investment in everything else in the economy.” paulkrugman.substack.com/p/ai-versus-...
AI Versus Everything Else
The hyperscaler boom is crowding out other investment
paulkrugman.substack.com
October 6, 2026 at 11:27 AM
“Massive spending on data centers is crowding out investment in everything else in the economy.” paulkrugman.substack.com/p/ai-versus-...
I don't feel comfortable with the silicon valley type economy in which you become fabulously rich of products that don't make money. Do you think the bubble will burst before societal harm gets too grave?
October 6, 2026 at 7:08 AM
I don't feel comfortable with the silicon valley type economy in which you become fabulously rich of products that don't make money. Do you think the bubble will burst before societal harm gets too grave?
If you're a non-US technocrat who thinks they're getting "strangled by interest rates" (BdF governor today), your escape routes are
- a massive AI productivity boom that is very unlikely
- a massive AI stock market crash that is very likely
Unusual incentives, to say the least.
- a massive AI productivity boom that is very unlikely
- a massive AI stock market crash that is very likely
Unusual incentives, to say the least.
Takeaway #2: A stock market crash is coming; it will be major; sovereign bonds will be a hedge again. In other words, if you're an embattled issuer (looking at you, London, Paris) hang in there.
October 5, 2026 at 6:14 PM
If you're a non-US technocrat who thinks they're getting "strangled by interest rates" (BdF governor today), your escape routes are
- a massive AI productivity boom that is very unlikely
- a massive AI stock market crash that is very likely
Unusual incentives, to say the least.
- a massive AI productivity boom that is very unlikely
- a massive AI stock market crash that is very likely
Unusual incentives, to say the least.
Reposted by Aaron Sojourner
The A.I. investment boom is contributing to inflation. It also appears nearly immune to high interest rates. That’s a challenging combination for the Fed — with potentially serious implications for the rest of the economy.
With @colbylsmith.bsky.social:
www.nytimes.com/2026/10/05/b... #EconSky
With @colbylsmith.bsky.social:
www.nytimes.com/2026/10/05/b... #EconSky
High Interest Rates Aren’t Slowing the A.I. Boom. That’s a Problem for the Fed. (Gift Article)
Rising borrowing costs are taking a toll on households and businesses. But they are doing little to dampen enthusiasm for investments in A.I. infrastructure, which are contributing to inflation.
www.nytimes.com
October 5, 2026 at 3:43 PM
The A.I. investment boom is contributing to inflation. It also appears nearly immune to high interest rates. That’s a challenging combination for the Fed — with potentially serious implications for the rest of the economy.
With @colbylsmith.bsky.social:
www.nytimes.com/2026/10/05/b... #EconSky
With @colbylsmith.bsky.social:
www.nytimes.com/2026/10/05/b... #EconSky
Takeaway #2: A stock market crash is coming; it will be major; sovereign bonds will be a hedge again. In other words, if you're an embattled issuer (looking at you, London, Paris) hang in there.
October 5, 2026 at 2:00 PM
Takeaway #2: A stock market crash is coming; it will be major; sovereign bonds will be a hedge again. In other words, if you're an embattled issuer (looking at you, London, Paris) hang in there.
2. 10-year US Treasury yield at 5.30% despite last week's cooling data and dovish Fedspeak (CNBC chart). This reflects the importance of the structural supply/demand mismatch I've been harping on: surging long-end issuance and some retreat in traditionally reliable buyers.
#economy #markets #oil
#economy #markets #oil
October 5, 2026 at 1:27 PM