WHY IS THE HIGH RATE OF RETURN PUTTING PRESSURE ON AI AND THE TECHNOLOGY UNIT

With the rise in US Treasury debt return, AI and the Science and Technology Unit are under pressure. High rates of return reduced the present value of future gains, made risk-free bonds more competitive with equities and increased financing costs. This is particularly significant for rapidly growing companies, such as Nvidia and Broadcom, whose valuation depends on future profit expectations. In September 2026, the United States had a 10-year national debt return of nearly 4.8 per cent and a 30-year return of over 5 per cent. Even small long-term interest rate changes have a significant impact on high-valued growth stocks. High rates of return also make investors more inclined to choose safe assets, thus putting pressure on the valuation of the technology unit。