Treasury Intervention and AI Shift Send Shockwaves Through Financial World

The US Treasury Secretary's intervention in the bond and forex markets has sent shockwaves through the financial world. In August, Secretary Scott Bessent made it clear that authorities would rather see the currency depreciate than allow the bond market to collapse.

This stance is reshaping investors' positioning logic, with gold, Bitcoin, and major metals coming into the spotlight. Meanwhile, the AI narrative is shifting rapidly from the 'construction phase' to the 'application phase'.

Nvidia's market value soared by nearly $500 billion in a single day after its impressive second-quarter earnings, but this was accompanied by a rare divergence in the market, with non-AI assets declining. Mark Wilson of Goldman Sachs characterized this series of events as the 'consequential August event sequence'.

The policy response function has become clearer, with officials choosing currency depreciation over allowing the bond market to break. This intervention is significant not just for its technical effect but also for its impact on positioning logic. Investors are being told that nominal growth will be policy-backed, and those with insufficient exposure to 'store-of-value' assets are already falling behind.

The AI narrative is accelerating its shift from the construction phase to the application phase, with Moderna's stock price soaring 175% in a single day after publishing research results on personalized vaccines. Stripe also announced the acquisition of OpenRouter and wrote in its letter to shareholders that 'January 1 marks the beginning of the singularity... we see a major inflection point in long-term trends'. Mark Wilson believes these announcements reveal the innovative potential of AI advancing from the build stage to the utility stage.