Goldman Sachs warns AI, government borrowing pushing up global rates
Business
Goldman Sachs is sounding the alarm: borrowing money is getting more expensive worldwide, thanks to big spending on AI data centers by private companies and increased government borrowing for energy and defense.
This spike in costs could make it harder for businesses and governments to invest.
Rising yields risk equities, sectors cushion
With governments borrowing more to fund infrastructure, long-term interest rates are climbing.
That's making stocks more sensitive to changes in bond yields, so if rates jump quickly, equities can take a hit.
The good news? Sectors like tech, commodities, and banking are still posting strong earnings, which helps cushion some of these risks and keeps investment opportunities alive outside the US.