Good morning and welcome to Markets Desk. Here are the stories moving markets right now.
Data center investment has quietly crossed a threshold that Wall Street is taking seriously. Spending on information processing hardware, driven by hyperscaler buildouts, now exceeds residential housing investment in the United States, a structural shift that underscores just how deeply artificial intelligence capital expenditure is rewiring the economy's growth engine.
On the subject of artificial intelligence, Nvidia CEO Jensen Huang is pushing back hard against calls for tighter AI regulation, saying fellow tech leaders have ulterior reasons for warning about doomsday scenarios. Huang argued existing rules are sufficient to keep the technology both safe and profitable, remarks that closely echo the current White House position and carry significant weight given Nvidia's dominance in AI chip supply.
And in the bond market, efforts by the Treasury Department and the White House to talk long-term yields lower are drawing skepticism from investors. Analysts warn that without a credible fiscal consolidation plan behind it, any administrative push to suppress Treasury yields is likely to run headlong into the reality of supply and inflation expectations, leaving bond bulls disappointed.
That's the tape. Markets Desk, signing off the floor.
