In the past, rising interest rates have often triggered this shift. These bonds also tend to be less sensitive to rising interest rates than long-term government bonds. If companies reduce spending on AI projects, US growth could weaken and affect markets globallyCurrency markets add another layer of uncertainty. The US dollar has weakened recently but still plays a defensive role in times of stress and offers relatively higher interest rates. When optimism is high, markets can react strongly even to small changes in expectations.