AI Debt Binge Fueling Private Bond Market | The Close 7/1/2026

Summary

Markets opened July with a slight S&P 500 drop, weighed by a 6% semiconductor slide, while Meta surged on news of its AI cloud ambitions. Guests discussed rapid equity rotations, the shift from software to AI infrastructure, IPO optimism led by Anthropic, Nike’s cautious earnings, and hawkish Fed dynamics supporting the dollar. AI’s financing boom and mixed labor market signals rounded out the conversation.

• S&P 500 down 0.2%, semis fall 6%, Meta up nearly 9% on cloud-infrastructure plans.
• Charles Schwab strategist highlights rapid rotations and momentum-factor dislocation.
• Jefferies analyst says near-term money flows to AI hardware like AMD rather than software.
• CoreWeave drops 14% on Meta’s competitive threat; AMD called a key AI infrastructure beneficiary.
• Union Square Advisors president expects Anthropic to be a great IPO following SpaceX’s success.
• Nike shares rally despite caution; Guggenheim analyst remains unconvinced of a turnaround.
• Bank of America expects three Fed rate hikes this year, boosting the dollar.
• Private bond market sees record AI-related issuance; AI adoption tied to increased hiring, especially entry-level jobs.