Fitch Warns AI Boom and Rising Yields Threaten Global Markets

Fitch is effectively linking two of the market's biggest support beams — the AI capex cycle and easy financing — and flagging that both could falter together. The AI warning matters most because infrastructure spending has been a rare source of durable credit demand; if it outruns real end-use, the pullback risk is concentrated in the issuers and lenders most exposed to that buildout. The rate path matters just as much: a Fed at 4.25% through 2027 and 10-year yields near 4.8% keep refinancing pressure on leveraged borrowers. Whether AI spending holds up as financing costs stay elevated is the open question.