AI Exuberance Lifts Markets Toward a Familiar Risk

Investors are starting the shortened holiday week with renewed optimism, but the latest surge in AI spending is raising familiar questions about leverage, speculation, and whether the boom can avoid the investment busts that followed earlier technology manias.Mike Armstrong and Marc Fandetti break down why markets appear willing to look past renewed Iran tensions, how control of the Strait of Hormuz could keep a risk premium in oil prices, and why rising margin debt can make market downturns more dangerous. They also discuss the Supreme Court’s latest ruling involving Fed Governor Lisa Cook, Kevin Warsh’s push to change Fed communication, why AI-related capital spending may eventually create winners and losers across the supply chain, and how past booms in railroads, electrification, and dot-com stocks offer a warning for today’s AI trade.