According to the president of Blackstone Inc., there’s no bubble in artificial intelligence. Treasury Secretary Scott Bessent isn’t seeing a “systemic problem” in the boom. But as hard as Wall Street brass works to tamp down concerns around the space, markets are refusing to be calmed.
The Nasdaq 100 capped its worst two-week drop since April of last year, while measures of credit risk and turbulence both jumped. As an AI-linked equities basket tanked 4.9%, investors piled into Treasuries, driving the 10-year yield below 5% for the first time in a month and reviving a haven trade that went missing over the summer.
