Hyperscalers Expected to Stick With Investment Plans for Now -- Market Talk

0612 GMT - The Democrats' clear election victory is fueling expectations for stricter regulation of AI and the construction of data centers, but a genuine shift in the direction of U.S. AI policy appears rather unlikely, ICM Investmentbank's Michael Klawitter says in a note. "Consequently, the 'hyperscalers' are expected to stick to their current investment plans for the time being," the chief economist and portfolio manager says. Hyperscalers contribute significantly to the supply of duration, and given this issuance dynamic, U.S. technology giants have emerged over the past two years as a distinct group of issuers within the investment-grade segment--one for which the standard market correlations between credit ratings and spreads apply only to a limited extent, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

November 06, 2026 01:12 ET (06:12 GMT)