Investors trim growth bets on fears US economy is overexposed to AI

· Finance · United States

Investors are cutting growth bets and returning to bonds after a long sell-off, driven by concern that the US economy is over-reliant on technology spending, the Financial Times reported. The shift comes as tech stocks fall and attention turns to US midterm elections, with control of Congress hanging on narrow races. The items frame the move as a repositioning rather than a single market event: investors are weighing how much of US growth depends on AI-related capital spending, and rotating toward fixed income as a hedge. The immediate effect is pressure on the growth trade that has driven equity indexes.

Why it matters：If investors start pricing AI capital spending as a systemic risk to US growth, portfolio flows could shift from equities to bonds and reshape valuations across tech and beyond.

Key points

  • The move follows a long sell-off in bonds.
  • Tech stocks fell as voters head to midterm elections.
  • The concern centers on US growth's reliance on tech spending.

Sources (original reporting)

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