{"id":5493,"date":"2026-09-28T12:38:53","date_gmt":"2026-09-28T12:38:53","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=5493"},"modified":"2026-09-28T12:38:53","modified_gmt":"2026-09-28T12:38:53","slug":"michael-hartnett-says-mag7-exposed-to-bond-market-due-to-ai-investment","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=5493","title":{"rendered":"Michael Hartnett says Mag7 exposed to bond market due to AI investment"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg?w=2048\" \/><\/p>\n<div id=\"\">\n<p class=\"wp-block-paragraph\">It was May 2023 when Bank of America\u2019s Michael Hartnett took inspiration from the Wild West, coining the phrase \u201cMagnificent 7\u201d for a group of American companies that have proved to be the main driver of the stock market during an AI boom.<\/p>\n<p>And while the Mag 7\u2014Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla\u2014remain dominant forces in the asset class, Hartnett now says that the very thing which once made them a portfolio \u201cmust\u201d is now a vulnerability.<\/p>\n<p>Fiscal excess led investors to put their money toward something more sustainable, BofA\u2019s chief investment strategist suggested in a recent episode of the <em>Master Investor<\/em> podcast. He said: \u201cTo a certain extent,\u00a0the rise of the Mag 7 was because\u00a0nobody wanted to hold government bonds.: \u2018I don\u2019t want the government balance\u00a0sheet. They spend like drunken sailors. Why do I want to lend to them?\u2026 I\u2019d rather put my\u00a0money with companies that have tons of\u00a0cash and \u2026 don\u2019t spend any of\u00a0it.\u2019<\/p>\n<div class=\"paywall\">\n<p class=\"wp-block-paragraph\">\u201cThat was the Mag 7,\u201d Hartnett said. However, AI hyperscalers have now begun spending\u2014to a breathtaking degree. Global AI investment is expected to exceed $1 trillion in 2026, per Goldman Sachs\u2019s latest calculations, with JPMorgan Chase CEO Jamie Dimon expecting hyperscaler AI spending will hit the $1 trillion mark next year.<\/p>\n<p class=\"wp-block-paragraph\">But with bond yields rising at the longer end of the scale (10-year Treasuries sit at a near two-decade high, while 30-year Treasuries haven\u2019t sat at their current levels of more than 5.5% since 2002), borrowing costs across the economy have increased. <\/p>\n<p class=\"wp-block-paragraph\">The tech sector has run down its pile of cash and begun borrowing heavily in the corporate credit markets. Increasingly, that means the prospects of the Mag 7 are tied to the very asset class it was once used as a hedge against.<\/p>\n<p class=\"wp-block-paragraph\">As Hartnett explains: \u201cLet\u2019s not forget that the Mag 7, the\u00a0hyperscalers, whatever you want to\u00a0call them, part of the reason to say\u00a0they\u2019re magnificent\u00a0is because they made magnificent amounts of cash and didn\u2019t spend any of\u00a0it. That\u2019s why they were magnificent.<\/p>\n<p class=\"wp-block-paragraph\">\u201cNow they\u2019re spending a\u00a0trillion plus a year on AI capex, and\u00a0they\u2019re negative cash flow to the tune\u00a0of $200 billion. So \u2026 they have to be kind of\u00a0subservient to the bond market. If the bond market pushes up\u00a0yields or spreads too much, you\u2019re not\u00a0going to get the spending.\u201d<\/p>\n<h2 class=\"wp-block-heading\">The pain threshold<\/h2>\n<p class=\"wp-block-paragraph\">While Wall Street is divided on U.S. Treasury Secretary Scott Bessent\u2019s recent bond buyback scheme, economists told <em>Fortune<\/em> that the action had taught investors an important lesson: The point at which the Treasury will step in to smooth volatility.<\/p>\n<p class=\"wp-block-paragraph\">And while the 5% mark is a threshold that sticks in investors\u2019 minds, it hasn\u2019t automatically triggered action in the past. As Hartnett points out: \u201cHalf of what I do is\u00a0listen to smart clients and\u00a0half of what I do is just watch prices in the market. It\u2019s\u00a0not me thinking 5% is a magical level.\u201d <\/p>\n<p class=\"wp-block-paragraph\">The threshold means more to policymakers, Hartnett argues, because domestically, higher yields mean \u201cthe AI companies can\u2019t borrow to do AI capex, and you really hurt the wealth effect that\u2019s been so strong via the equity market.\u201d Additionally, geopolitically, \u201cThere\u2019s one objective, which is to beat China at AI, and they cannot allow a disorderly move in the bond market\u2014and to a certain\u00a0extent that\u2019s why I feel that they\u2019ll succeed because they\u2019ll do\u00a0anything they can to prevent that.\u201d<\/p>\n<p class=\"wp-block-paragraph\">\u201cWhat\u00a0they can\u2019t necessarily\u00a0\u2026 manipulate is if voters\u00a0basically vote against AI. So the\u00a0Wall Street threat is bonds. The Main\u00a0Street threat is voters.\u201d<\/p>\n<\/div>\n<div class=\"flex flex-col layout-gap-md\">\n<div class=\"not-prose empty:contents clear-both [:has(*[data-empty=true])]:hidden max-md:[:has(*[data-empty-mobile=true])]:hidden md:[:has(*[data-empty-desktop=true])]:hidden\">\n<div class=\"typography-level-4 mt-4 font-graphik-compact [&amp;_*_a]:hover:underline [&amp;_*_a]:text-accent\" data-cy=\"subscriptionPlea\"><span class=\"description-parser contents\" data-cy=\"description\"><em><strong>Fortune Daily<\/strong><\/em> breaks the traditional barrier between audience and newsroom. The show transforms <em>Fortune<\/em>\u2019s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. <strong>Watch here.<\/strong><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>#Michael #Hartnett #Mag7 #exposed #bond #market #due #investment<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It was May 2023 when Bank of A&hellip; <\/p>\n","protected":false},"author":1,"featured_media":5494,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[2530,5479,113,598,1106,8574,22,8575,33,3421,3129,1494],"class_list":["post-5493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-bond","tag-bond-yields","tag-bonds","tag-due","tag-exposed","tag-hartnett","tag-investment","tag-mag7","tag-market","tag-michael","tag-scott-bessent","tag-tech-stocks"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vaultinsider.top\/?p=5493\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News\" \/>\n<meta property=\"og:description\" content=\"It was May 2023 when Bank of A&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vaultinsider.top\/?p=5493\" \/>\n<meta property=\"og:site_name\" content=\"Finance News\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-28T12:38:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg?w=2048\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u4f5c\u8005\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 \u5206\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\"},\"headline\":\"Michael Hartnett says Mag7 exposed to bond market due to AI investment\",\"datePublished\":\"2026-09-28T12:38:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493\"},\"wordCount\":666,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/GettyImages-2266799621-e1790592198918.jpg\",\"keywords\":[\"bond\",\"bond yields\",\"bonds\",\"due\",\"exposed\",\"Hartnett\",\"INVESTMENT\",\"Mag7\",\"market\",\"Michael\",\"Scott Bessent\",\"tech stocks\"],\"articleSection\":[\"Finance News\"],\"inLanguage\":\"zh-Hans\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493\",\"name\":\"Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/GettyImages-2266799621-e1790592198918.jpg\",\"datePublished\":\"2026-09-28T12:38:53+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#breadcrumb\"},\"inLanguage\":\"zh-Hans\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"zh-Hans\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#primaryimage\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/GettyImages-2266799621-e1790592198918.jpg\",\"contentUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/GettyImages-2266799621-e1790592198918.jpg\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=5493#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u9996\u9875\",\"item\":\"https:\\\/\\\/www.vaultinsider.top\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Michael Hartnett says Mag7 exposed to bond market due to AI investment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#website\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/\",\"name\":\"Finance News\",\"description\":\"Just another Finance News site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.vaultinsider.top\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"zh-Hans\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\",\"name\":\"admin\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.vaultinsider.top\/?p=5493","og_locale":"zh_CN","og_type":"article","og_title":"Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News","og_description":"It was May 2023 when Bank of A&hellip;","og_url":"https:\/\/www.vaultinsider.top\/?p=5493","og_site_name":"Finance News","article_published_time":"2026-09-28T12:38:53+00:00","og_image":[{"url":"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg?w=2048","type":"","width":"","height":""}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"\u4f5c\u8005":"admin","\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4":"3 \u5206"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.vaultinsider.top\/?p=5493#article","isPartOf":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493"},"author":{"name":"admin","@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e"},"headline":"Michael Hartnett says Mag7 exposed to bond market due to AI investment","datePublished":"2026-09-28T12:38:53+00:00","mainEntityOfPage":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493"},"wordCount":666,"commentCount":0,"image":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493#primaryimage"},"thumbnailUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg","keywords":["bond","bond yields","bonds","due","exposed","Hartnett","INVESTMENT","Mag7","market","Michael","Scott Bessent","tech stocks"],"articleSection":["Finance News"],"inLanguage":"zh-Hans","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.vaultinsider.top\/?p=5493#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.vaultinsider.top\/?p=5493","url":"https:\/\/www.vaultinsider.top\/?p=5493","name":"Michael Hartnett says Mag7 exposed to bond market due to AI investment - Finance News","isPartOf":{"@id":"https:\/\/www.vaultinsider.top\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493#primaryimage"},"image":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493#primaryimage"},"thumbnailUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg","datePublished":"2026-09-28T12:38:53+00:00","author":{"@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e"},"breadcrumb":{"@id":"https:\/\/www.vaultinsider.top\/?p=5493#breadcrumb"},"inLanguage":"zh-Hans","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.vaultinsider.top\/?p=5493"]}]},{"@type":"ImageObject","inLanguage":"zh-Hans","@id":"https:\/\/www.vaultinsider.top\/?p=5493#primaryimage","url":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg","contentUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/09\/GettyImages-2266799621-e1790592198918.jpg","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/www.vaultinsider.top\/?p=5493#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u9996\u9875","item":"https:\/\/www.vaultinsider.top\/"},{"@type":"ListItem","position":2,"name":"Michael Hartnett says Mag7 exposed to bond market due to AI investment"}]},{"@type":"WebSite","@id":"https:\/\/www.vaultinsider.top\/#website","url":"https:\/\/www.vaultinsider.top\/","name":"Finance News","description":"Just another Finance News site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.vaultinsider.top\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"zh-Hans"},{"@type":"Person","@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e","name":"admin","url":"https:\/\/www.vaultinsider.top\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts\/5493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5493"}],"version-history":[{"count":0,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts\/5493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/media\/5494"}],"wp:attachment":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}