Rising Borrowing Costs Threaten Global Investments

Goldman Sachs has warned that rising borrowing costs are posing a threat to investments globally. This increase in borrowing costs is being driven by heavy spending on artificial intelligence (AI) data centers and increased government borrowing for energy and defense.

The rising long-term interest rates are making equities more vulnerable to bond yield changes, the investment bank has cautioned.

However, Goldman Sachs notes that certain sectors such as tech, commodities, and banking continue to post strong earnings. These sectors are helping to cushion risks and sustain investment opportunities outside of the US.