Strong earnings meet rising borrowing costs, and the AI trade is feeling it
Profits are growing fast, but 10-year Treasury yields near multi-decade highs are pulling the other way. Here is why that tug-of-war matters for stocks, and why the AI trade isn't as shielded as it looked.
Two forces are pushing on the stock market at the same time, and they point in opposite directions. Corporate profits are strong. Borrowing costs are climbing. According to a MarketWatch report published on Oct 19, 2026, that collision is what stocks are walking into this week.
Start with the earnings side. The report says analysts expect profits to keep growing, led by technology and energy companies, with AI data center spending a major driver. Another weekly market…
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