{"id":16657,"date":"2026-07-25T10:00:16","date_gmt":"2026-07-25T05:00:16","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=16657"},"modified":"2026-07-25T10:00:16","modified_gmt":"2026-07-25T05:00:16","slug":"moodys-finds-that-markets-have-adjusted-to-a-new-economic-world-order","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=16657","title":{"rendered":"Moody&#8217;s finds that markets have adjusted to a new economic world order"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p><strong>How it works: <\/strong>You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt.<\/p>\n<ul>\n<li>And it&#8217;s visible under the hood in the stock market, where certain sectors are struggling. <\/li>\n<li>Software stocks have fallen this year, thanks to AI, as have those for autos, consumer goods and apparel, as consumers struggle with higher prices.<\/li>\n<li>The new hot sectors, meanwhile, are energy (because of the Iran war and other conflicts), hardware and semiconductors, as investors flock to the picks and shovels of the AI boom.<\/li>\n<\/ul>\n<div>\n<figure>\n<div id=\"av-hermesv2\/2026-07-22-1325-change-in-price-VPTJW\" style=\"max-width:100%\" data-vars-category=\"embed\" data-vars-sub-category=\"axios-visual\" data-vars-asset-id=\"av-hermesv2\/2026-07-22-1325-change-in-price-VPTJW\" data-vars-iframe-src=\"https:\/\/graphics.axios.com\/hermesv2\/2026-07-22-1325-change-in-price\/index.html\" class=\"gtmView\"><img loading=\"lazy\" decoding=\"async\" alt=\"A bar chart that shows year-to-date stock-price changes by industry as of July 22, 2026. Semiconductors and semiconductor equipment lead at 39.61%, followed by technology hardware at 32.36% and energy at 31.77%. Software and services trails at -20.13%, with three sectors posting declines.\" class=\"axios-visual-newsletter-fallback-image\" src=\"https:\/\/graphics.axios.com\/hermesv2\/2026-07-22-1325-change-in-price\/fallbacks\/2026-07-22-1325-change-in-price-fallback.png\" width=\"1200\" height=\"632\"\/><img loading=\"lazy\" decoding=\"async\" alt=\"A bar chart that shows year-to-date stock-price changes by industry as of July 22, 2026. Semiconductors and semiconductor equipment lead at 39.61%, followed by technology hardware at 32.36% and energy at 31.77%. Software and services trails at -20.13%, with three sectors posting declines.\" class=\"axios-visual-apple-fallback-image\" src=\"https:\/\/graphics.axios.com\/hermesv2\/2026-07-22-1325-change-in-price\/fallbacks\/2026-07-22-1325-change-in-price-apple.png\" width=\"750\" height=\"708\"\/><\/div><figcaption>Data: FactSet; Chart: Emily Peck\/Axios<\/figcaption><\/figure>\n<\/div>\n<p><strong>The big picture: <\/strong>There have been huge economic shifts since the pandemic. <\/p>\n<ul>\n<li>Until then, we were in a post-2008 financial crisis regime. Inflation ran lower than central bank targets. Governments were able to borrow money cheaply. Low interest rates helped fuel companies&#8217; growth.<\/li>\n<li>With rates near zero, investors flocked to investments that offered a return: high-growth tech, long-dated government bonds, loans to riskier businesses. <\/li>\n<\/ul>\n<p><strong>Where it stands: <\/strong>That era is over.<strong> <\/strong>&#8220;In the last few years, we&#8217;ve moved to a different era,&#8221; says Atsi Sheth, chief credit officer at Moody&#8217;s Ratings. <\/p>\n<ul>\n<li>It&#8217;s all about geopolitical uncertainty, higher government deficits, demographic changes and policies shaped by economic-security concerns. <\/li>\n<li>Inflation is higher, and so are borrowing costs. The yield on the 30-year U.S. Treasury has traded above 5% for the longest period since the beginning of the financial crisis, <a class=\"gtmContentClick\" data-vars-link-text=\"per Bloomberg\" data-vars-click-url=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-07-22\/us-30-year-yield-raises-alarm-in-longest-run-above-5-since-2007?\" data-vars-content-id=\"81753d6d-9858-48b0-8fc8-d4fc0952607f\" data-vars-headline=\"The world is crazy. Why are stocks up?\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-07-22\/us-30-year-yield-raises-alarm-in-longest-run-above-5-since-2007?\" target=\"_blank\">per Bloomberg<\/a>.<\/li>\n<\/ul>\n<p><strong>Zoom in: <\/strong>First, pandemic supply-chain disruptions and demand imbalances drove higher prices. Today, it&#8217;s the war and other tensions, like:<\/p>\n<p><span data-ad-status=\"AD\" data-ad-type=\"midStoryAd\"\/><\/p>\n<ul>\n<li><strong>The cost of AI.<\/strong> In their heyday, software companies could grow with relatively little capital and throw off cash for investors. Now, hyperscalers require huge amounts of capital expenditure for AI.<\/li>\n<li><strong>Government debt. <\/strong>Governments are borrowing more money, in part to deal with rising geopolitical tensions, and that&#8217;s helping raise borrowing costs for countries and all of us. (Checked mortgage rates lately?)<\/li>\n<\/ul>\n<p><strong>The intrigue: <\/strong>The market seems calm on the surface, Sheth says. &#8220;But then you look lower.&#8221;<\/p>\n<p><strong>What to watch: <\/strong>There are risks. All that AI spending might not pay off. And Sheth notes that investors are still betting that governments will step in if turbulence rises.<\/p>\n<ul>\n<li>Some investors bank on <a class=\"gtmContentClick\" data-vars-link-text=\"the TACO trade\" data-vars-click-url=\"https:\/\/www.axios.com\/2025\/05\/29\/trump-taco-trade-tariffs\" data-vars-content-id=\"81753d6d-9858-48b0-8fc8-d4fc0952607f\" data-vars-headline=\"The world is crazy. Why are stocks up?\" data-vars-event-category=\"story\" data-vars-sub-category=\"story\" data-vars-item=\"in_content_link\" href=\"https:\/\/www.axios.com\/2025\/05\/29\/trump-taco-trade-tariffs\" target=\"_self\">the TACO trade<\/a> \u2014\u00a0the idea that if geopolitical pressures get too hot for the markets, President Trump will try to dial down the temperature. <\/li>\n<li>But there&#8217;s no guarantee of that.<\/li>\n<\/ul>\n<p><strong>The bottom line: <\/strong>Investors are coping with the new economic paradigm \u2014 so far. <\/p>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>How it works: You can see the change in bond markets, where government yields have risen across most advanced economies. In corporate bonds, investors have moved away from riskier debt. And it&#8217;s visible under the hood in the stock market, where certain sectors are struggling. Software stocks have fallen this year, thanks to AI, as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.axios.com\/mu4o451fqPMJwK-rJxxMixJku1Y=\/0x0:1280x720\/1366x768\/2026\/07\/22\/1784750865326.jpg","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-16657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-political-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/16657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16657"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/16657\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/16658"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}