Good evening and welcome to Markets Desk.
The AI trade is unwinding in a meaningful way, and investors are repositioning fast. The continued selloff in high-flying tech names is pushing capital toward the relative safety of government bonds, though hot inflation data complicates that flight to quality and leaves traders caught between two uncomfortable choices.
Shifting to the ride-share space, Lyft is escalating its rivalry with Uber by launching a new brand called Alcove, targeting the premium business travel market. The service will lean on a chauffeur company Lyft acquired last year, signaling that both platforms see high-margin corporate accounts as the next real battleground for growth.
And on the rate front, Bank of America is flagging another potential interest rate surprise just as mortgage shoppers were hoping for relief. Freddie Mac's latest survey data shows borrowing costs remain stubbornly elevated, keeping would-be homebuyers on the sidelines and reinforcing how sensitive this housing market remains to any shift in Fed expectations.
That's the tape. Markets Desk, signing off the floor.
