Live Markets: The slow way rates matter for the AI trade

UBS AG

16/10/2026 12:22

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THE SLOW WAY RATES MATTER FOR THE AI TRADE 
The theme of the week has been worries about AI trade and rates, but while everyone might be nervous about a big bang shock, Mark Dowding, fixed income CIO at BlueBay, says higher rates could slow the AI buildout through countless small decisions 
In a Friday note, he says companies in sectors beyond AI are starting to get squeezed by higher rates, and this is translating into a greater focus on cost containment, including on AI. 
"It seems that token spend is starting to be rationed by many managers after an initial free-for-all," he said. 
     "This is not to suggest that AI growth and infrastructure build is set to slow or stop, just that the continued pattern of quarter-on-quarter acceleration across all metrics may be starting to moderate," Dowding continues. 
(Alun John) 
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EARLIER ON LIVE MARKETS:
     
DÉJÀ VU FOR THE CAC 40 CLICK HERE
WHAT'S NEXT FOR THE AI TRADE? CLICK HERE
STOXX 600 HEADS FOR WEEKLY GAIN CLICK HERE
EUROPE BEFORE THE BELL: FUTURES RISE, TECH JITTERS EASE CLICK HERE
CALM AFTER COREWEAVE SHOCK, BUT FOR HOW LONG? CLICK HERE