Rising yields threaten to derail tech and AI stock rally

The current stock market is defined by a tension between a narrow AI-focused rally and rising US Treasury yields. While AI-related firms continue to see strong revenue growth and capital investment, the market suffers from poor breadth, with fewer than half of S&P 500 stocks trading above key moving averages. Rising yields, driven by persistent inflation and a bond market selloff, threaten to compress equity multiples and increase capital costs. Investors are urged to watch NVIDIA's earnings as a critical catalyst and consider structural bottlenecks in the AI supply chain, such as power and cooling infrastructure, as potentially more durable investment areas.

(Source：Crypto Briefing)