August 12, 2026 - AI Rally Masks a Record Budget Deficit

Market Pulse by Orestes Capital · Aug 13, 2026 · 17m

Markets are celebrating the AI trade—but beneath the equity rally, the U.S. fiscal picture is becoming harder to ignore.

In this episode of Market Pulse, we break down the tension between renewed strength in AI and technology stocks, cooling inflation pressures, and a record budget deficit that raises longer-term questions for Treasury supply, interest rates, and the cost of financing the U.S. government.

The market may be focused on growth, earnings, and the next leg of the AI boom, but the bond market is increasingly being asked to absorb a much larger fiscal burden. We examine what that…