Treasuries Rally as AI Slump Drives Haven Demand; CoreWeave Credit Risk Hits Record
Treasuries led a global bond rally as AI shares deepened their selloff and CoreWeave's credit risk hit a record high. US producer prices rose at the fastest pace in more than four years, adding to monetary-policy questions.
A measure of CoreWeave's credit risk climbed to an all-time high Thursday, and the company's high-yield bonds extended declines, according to Bloomberg. The moves in Treasuries and CoreWeave debt underscored the market's shift toward safety as AI-related equities weakened.
Bloomberg Tech host Ed Ludlow offered reaction to the market developments. Steve Kaplan of JPMorgan Asset Management also joined Bloomberg Businessweek Daily to discuss trends in portfolio diversification.
The program also featured Bloomberg's Austin Carr examining Marc Andreessen's rise as a MAGA power player ahead of the midterms. The segment focused on Andreessen's political influence as the midterm elections approach.
On the economic side, US producer prices rose in September at the fastest pace in more than four years, Bloomberg reported. Higher energy costs reverberated through the US economy, according to the report. Frank Monkam, a Bloomberg News macro strategist, examined what the inflation reading could mean for monetary policy on the same episode.
The producer-price increase arrived as the bond market rallied and AI shares remained under pressure. On the same episode, Monkam examined the implications for monetary policy as the bond rally signaled demand for havens.