President Donald Trump's Bull Market Is Banking on the AI Infrastructure Build-Out, but the Bond Market Has a Reality Check for Investors

While Trump's bull market has been driven by AI infrastructure investments and major projects like the $500 billion Stargate initiative, bond markets are flashing warning signs. Corporate bonds of major AI companies are trading significantly below par value with soaring yields, suggesting traders are skeptical about whether AI revenues will justify the massive spending. Historical precedent indicates an AI bubble-bursting event could be imminent, potentially upending the stock market rally.