US Treasuries in driver’s seat for risky AI stocks as investors grapple with elevated yields

Stock traders in mainland China and Hong Kong are looking to the US bond market for clues on the sustainability of the artificial-intelligence trade after rising Treasury yields jolted global financial markets. Elevated yields on longer-dated Treasuries, a benchmark for global funding costs from mortgage rates to corporate borrowing, have emerged as a constraint on risk assets. That poses a particular threat to technology stocks trading at stretched valuations after years of frantic buying. Tech...