Payden & Rygel: AI-related spending drives US economic resilience

Investment management company Payden&Rygel stated in a report that rising oil prices were one of the reasons for last week’s increase in U.S. Treasury yields. The report noted that another reason is the unusual resilience of U.S. economic growth despite a series of shocks, and pointed to sustained AI-related capital expenditures by mega-cap companies. Payden&Rygel stated that total technology spending is expected to exceed $800 billion in 2026. Although investors have expressed doubts about the sustainability of growth driven by capital expenditures, Payden&Rygel noted that similar concerns have been raised for three consecutive years.