The rising cost of capital for companies today is starting to spook the stock market: ‘The worry is the spending might not pay off’

The rising cost of capital for companies today is starting to spook the stock market: ‘The worry is the spending might not pay off’

The increasing cost of capital is causing significant concern in the stock market as companies like Alphabet are pouring more money into AI projects amidst global tensions and rising oil prices. With bond yields climbing and oil prices hitting $100 a barrel, investors are wary that these substantial investments might not yield the expected returns. This situation highlights the broader economic challenges companies face, influencing market dynamics and investor sentiment.

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