AI Valuation Concerns Intensify, European Credit Default Protection Costs Rise

TechFlow reports, July 17, as concerns intensified over potentially excessive valuations of artificial intelligence companies, investor risk appetite declined, and the cost of euro-denominated credit default protection rose.

Investors questioned how long the rally in the artificial intelligence sector could last, thus selling off tech stocks and reducing preference for risk assets. S&P Global Market Intelligence data shows that the iTraxx Europe Crossover credit default swap (CDS) index, measuring eurozone high-yield credit risk, rose 2 basis points to 253 basis points. (Jin10)