Bond investors are looking to Fed Chairman Kevin Warsh's Jackson Hole speech for clarity on how the central bank will respond to persistent inflation and fiscal concerns. Long-term Treasuries have come under pressure in recent weeks, with 30-year yields recently reaching their highest level since 2007 and Treasury buybacks providing only temporary relief. Analysts said a lack of clear guidance could deepen the long-end selloff, while a clearer view on inflation could help reduce uncertainty-driven term premium.

US business investment is on track to grow more than three times faster than Europe's since the pandemic, widening the transatlantic gap as American companies pour capital into AI infrastructure. Oxford Economics forecasts US corporate spending on equipment and facilities will rise 40% in real terms between 2021 and the end of 2027, compared with 12% in the euro area, with AI equipment a key driver. The FT reported that Google, Meta, Microsoft and Amazon are on track to invest more than $725 billion in 2026 alone, underscoring both the scale of the U.S. AI build-out and concerns that returns may fall short if the investment cycle reverses.

In an opinion piece for the Financial Times, Treasury Secretary Scott Bessent argues the U.S. is entering an "economic D-Day" against Iran, using financial sanctions and enforcement tools to isolate the regime. Bessent says the campaign will target countries and entities that sustain Iran through petroleum purchases, financial channels, trade, shipping and other commercial ties. He frames the effort as a way to sever Iran's economic lifelines, pressure nations to choose between access to global capital and continued ties to Tehran, and avoid the need for broader military force.