The stock market’s AI-powered record run is colliding with an old-fashioned problem: expensive money and expensive energy.
U.S. stock futures weakened Wednesday after the S&P 500 and Nasdaq closed at record highs. Brent crude climbed back above $100 a barrel while the 30-year Treasury yield rose to levels not seen since 2002.
That split is becoming the defining market tension. Large technology companies continue to benefit from enormous AI spending, while rate-sensitive companies and smaller stocks face a much harsher financing environment.
Investors are now looking to Federal Reserve minutes and the coming earnings season for evidence that profit growth can outrun the pressure from rates, oil and inflation.
Can AI-driven earnings keep carrying stocks if borrowing costs and energy prices stay this high?
