Bond Market Rises Amid Rising Interest Rates and Cracks in AI Sector

The bond and stock markets diverged this week as interest rates rose to their highest levels since 2007. The 30-year Treasury yield reached 5.21%, while stocks held onto gains from AI-driven growth until earnings reports revealed cracks in the sector.

The Federal Reserve's firm stance on inflation pushed mortgage rates up to 6.66%, and Meta's 6% drop highlighted the risks of unchecked AI spending. Amazon, however, saw a 15% jump as its AI investments boosted margins.

Chipmakers fell sharply due to concerns about demand, while oil prices swung wildly due to tensions between Iran and the US. Copper rose quietly due to industrial demand linked to AI projects.