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Rising capital costs and geopolitical risks weigh on market sentiment

Alphabet plans to increase spending on its AI build-out as higher bond yields and oil at $100 a barrel add pressure on investors' assumptions about returns.

Reported · Written up by our desk · Sectors

MarketWatch reports that the stock market is increasingly sensitive to the rising cost of capital for companies, with investors worried that spending may not pay off.

The outlet points to Alphabet's plan to spend even more on its AI build-out, a move that comes as bond yields continue to rise.

MarketWatch also cites geopolitical strain, including the Iran war, and says oil is back at $100 a barrel, factors that are making it harder for the market to absorb higher financing and operating pressures.

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