WSJ: AI Boom Is Creating a New Capital Siphon, Pressuring U.S. Non-Technology Companies

According to a Wall Street Journal (WSJ) report, U.S. equities saw a sharp divergence in September. While the S&P 500 index remained broadly stable and the Nasdaq 100 rose 3%, nearly 80% of stocks in the S&P 500 declined, with an average drop of around 5%. Only two sectors—technology and communication services—out of the 11 major sectors posted gains. In the same period, the Russell 2000 index fell 5%, while the 50 largest-capitalization stocks rose 2%. Stocks that advanced in September were generally linked to AI or data center supply chains. Meanwhile, the U.S. 10-year Treasury yield surged from 4.7% to 5.3%. Non-AI firms face a "triple pressure" from interest rates, energy prices, and competition for staff, equipment and capital from AI companies. UBS Chief Economist Arend Kapteyn said U.S. capital expenditures are "effectively zero" when excluding AI tech firms. As financing costs rise, corporate credit spreads have also widened: spreads on CCC-rated low-grade bonds rose more than 1 percentage point in September, exceeding levels recorded during last year’s U.S. tariff shocks. Additionally, Wall Street’s expectations for corporate earnings growth have cooled. Goldman Sachs Head of Asset Allocation Research Christian Mueller-Glissmann noted that earnings and their forecasts grew rapidly in the first half of this year, but earnings growth momentum has weakened since the summer. The report argues that if Treasury yields and oil prices stay at high levels, sectors outside AI may continue to face pressure, corporate earnings growth will slow, and concerns over credit risk could rise further.