Welcome to Markets Desk, your midday read on what's moving markets and policy.
Apollo is sounding the alarm on hyperscaler credit risk, and the signal is coming from the derivatives market. Credit default swaps tied to data center builders are repricing higher, and sources say this isn't routine bank hedging — it reflects genuine concern about leverage accumulating inside the AI infrastructure build-out.
Shifting to Washington, the Pentagon's chief technology officer is pushing back on the idea of the federal government taking equity stakes in major tech companies, and is questioning whether new artificial intelligence regulations would do more harm than good. The remarks land as the Trump administration continues to resist calls for an AI slowdown, keeping deregulation firmly on the table.
On Capitol Hill, the House is set to pass a sweeping Russia sanctions bill carrying Senator Lindsey Graham's name. The legislation now appears on a clear path to becoming law, adding a significant layer of economic pressure on Moscow at a moment when the administration's posture toward Russia remains under intense scrutiny from both parties.
That's the tape. Markets Desk, signing off the floor.
