AI Investment Helps Markets Absorb 5% Yields as US Political Risk Builds

Amundi Investment Institute examines how US midterm elections and elevated Treasury yields could reshape markets, policy and sector performance.

• Divided government remains Amundi’s base case, limiting major fiscal changes while increasing risks around shutdowns, debt ceilings and executive action.
• Treasury yields above 5% remain manageable while real growth and AI-led investment support earnings, but sustained high rates could eventually pressure refinancing and credit.
• IT remains supported by AI spending, while rate-sensitive sectors and leveraged borrowers face greater vulnerability.

Explore the full report for Amundi’s cross-asset outlook.