Analysts: If AI Capital Expenditure Slows, It Could Impact Fed Rate Hike Prospects and U.S. Treasury Yields

TechFlow: On November 5, John Luke Tainer of Aptus Capital Advisors stated in a report that following the Democrats' gains in the gubernatorial elections, the market still needs to monitor whether AI capital expenditures and data center construction will be impacted or simply shift to states with more favorable government policies. The portfolio manager and head of fixed-income business said, "I expect related investment to decelerate, though the pace may not slow as much as the market fears." Regarding whether the Federal Reserve will continue raising interest rates, Tainer remarked, "If the primary inflationary pressures stem from energy prices and AI spending, then the 25-basis-point hike in September was likely the final move of this tightening cycle." He also added that government deadlocks typically drag down GDP growth, potentially creating room for further declines across the entire yield curve. (Jinshi)