Bonds, AI, and a bull market that has kept going

Treasuries are holding their safe-haven status, defying expectations that Middle East tensions would break the bond market's faith in the US. Yields fell as geopolitical concerns rose, a clear signal investors still seek refuge in US debt.

This resilience suggests a healthy market where credit discipline is improving. Investors are now more discerning, separating stronger companies from weaker ones. Meanwhile, demand for AI-related stocks like Nvidia (NVDA) continues to surge. Usage, revenue, and enterprise adoption are all climbing, even with ongoing questions about spending and profitability.

We need to watch if this AI momentum can sustain itself amid broader economic uncertainty. The market's ability to distinguish between strong and weak credits will also be key.