Treasury Yields Could Break the AI Boom

The global economy faces a slow-motion debt crisis compounded by the potential collapse of an AI-driven market bubble. Jesse Felder, founder of the Felder Report, identifies the 10-year Treasury yield as the primary indicator of waning confidence in the Federal Reserve’s ability to manage inflation. Market stability is increasingly threatened by the deterioration of earnings quality among hyperscalers, whose reliance on circular financing with cash-burning AI startups like OpenAI and Anthropic appears unsustainable. As speculative momentum wanes and leveraged capital faces impairment, the market is shifting toward value-oriented strategies. Meanwhile, commodities—specifically energy—remain significantly undervalued relative to gold and historical norms, offering a critical hedge against persistent inflation in a post-pandemic world defined by fractured globalization and shifting demographics.