The AI boom pushes interest rates higher

The explosion in artificial intelligence investment is fueling a global competition for capital, putting upward pressure on interest rates. Governments and companies are vying for funding for chips, data centers, and networks—a trend that makes credit more expensive and creates a challenging environment for risk assets, such as growth stocks and emerging-market bonds (including those of Argentina).

Increased global demand for capital is driving up interest rates in the United States, which strengthens the dollar and exerts downward pressure on bonds and stocks in emerging markets like Argentina.