Investors Trim US Growth Bets Amid AI Exposure Concerns, Driving Bond Purchases

Investors are scaling back their expectations for U.S. economic growth, leading to a notable increase in government bond acquisitions. This shift is largely influenced by mixed third-quarter corporate earnings, particularly within the artificial intelligence sector, prompting a re-evaluation of the AI rally's sustainability. The yield on the 10-year government bond, adjusted for inflation, has fallen to its lowest level since early September, indicating a move towards more defensive assets.