A markets mystery has perplexed some analysts this year: Why are stocks sitting near all-time highs while the global economy is rocked by geopolitical conflict and inflation pressures? Why it matters: The usual retort is that the stock market is not the economy, but a new report from Moody's offers a more nuanced explanation: - Markets have adjusted to the new economic world order — you just have to know where to look. How it works: You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt. - And it's visible under the hood in the stock market, where certain sectors are struggling. - Software stocks have fallen this year,…
The AI economy is being constrained by the physical world: The Iran war threatens to squeeze the industrial inputs that chip manufacturers depend on, the latest confirmation that once-reliable global chokepoints are now more fragile than ever. Why it matters: It is part of a growing pattern defining the economic conditions of the 2020s: shocks exposing the fragility of supply chains that the world took for granted. - The AI buildout is the latest to be throttled by this trend — in this case, the effects of an uncertain Middle East conflict and the Strait of Hormuz's effective closure. What they're saying: "Hyperscalers are committing roughly $650 billion to U.S. AI infrastructure this year alone. And that investment assumes the supply…
Mark Zandi, the chief economist at Moody’s, believes high price levels are likely to persist even after hostilities with Iran end. In addition, Zandi has warned that the stock market is becoming increasingly detached from the American economy, which he thinks could be causing many to underestimate the odds of a recession. The post Top Moody’s Economist Warns Prices Will Stay High Even After the Iran War Ends. appeared first on The National Pulse .
PULSE POINTS WHAT HAPPENED: Mark Zandi, the chief economist at Moody’s, believes high price levels are likely to persist even after hostilities with Iran end. WHO WAS INVOLVED: Mark Zandi, chief economist at Moody’s, investors, and the U.S. economy . WHEN & WHERE: Comments made in March and April 2026 . KEY QUOTE: “I don’t think we’re going back to the pre-war prices for the foreseeable future. Certainly won’t be this year, won’t even be next year. Might not be ever.” – Mark Zandi IMPACT: The prediction suggests long-term elevated prices, with the possibility of a recession later this year. IN FULL Mark Zandi, the chief economist at Moody’s , says he believes high price levels are likely to persist even after…Open
A report issued Wednesday by Moody's – one of the nation's big three credit rating agencies – warned investors that it may soon lower New York City’s AA credit rating and change the city’s credit status to "negative" from "stable" while affirming its Aa2 issuer rating, citing “sizable and persistent projected budget gaps."
Businesses are the big winners from the Supreme Court ruling invalidating President Trump's global tariffs after a bruising year in which the duties bludgeoned bottom lines and prompted price hikes . Why it matters: The ruling tees up a fight over corporate refunds — a potential windfall for companies that paid extra costs to import goods under the Trump tariff regime, though nothing is guaranteed. - If the Treasury Department is forced to issue refunds, it would total about $120 billion, according to Capital Economics estimates. Catch up quick: The Supreme Court on Friday overturned Trump's global tariffs in a 6-3 ruling, saying that the president lacked the legal authority under the International Emergency Economic Powers Act (IEEPA)…
AI is concentrating stocks, bonds, private credit — and even the broader economy — around a single bet. Why it matters: Tech companies are projected to issue over $1 trillion in debt to fund their AI goals this year. Yet there's little evidence the technology can be monetized at a scale that justifies the bet . State of play: Hyperscalers — the AI data-center giants — could spend up to $700 billion from their balance sheets on AI this year, while issuing eye-popping debt to access even more capital, according to UBS. - The eight largest companies, all tech firms with AI ambitions, make up nearly half of the S&P 500. - More than half of invested venture-capital dollars went to AI firms in 2025, per PitchBook. - Private credit…