How the bond market is handling AI risks

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  This is The Indicator from Planet Money.

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  I'm Ricky Mulvey.

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  And I'm Waylon Wong.

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  If you own stocks in the U.S., it's very likely that your money is tied up with mega tech companies.

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  That's because the 10 biggest stocks in the S&P 500 are names like Microsoft, NVIDIA, and Amazon.

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  And when these stocks dip, like they did this week on worries about AI spending, they take the market with them.

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  These same companies are starting to reshape the bond market.

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  Tech giants are borrowing hundreds of billions of dollars to finance AI data centers.

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  If your 401k has money invested in a U.S.

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  Bond fund, your savings could be fueling the buildout.

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  A buildout, by the way, that is a dominant force in the economy right now and affecting all of us.

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  This boom in data centers could lead to both productivity and financial gains,

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  but it also exposes new risks and it all comes back to bonds.

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  Today.

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  We look at how the bond markets are digesting this glut of AI-related bonds,

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  and we pose two questions that help us assess whether all of this borrowing is sustainable.

• 01:16

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• 01:25

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