Itzehoe – September 09, 2026 -- While the Dax and Dow Jones post fresh records and corporate profits climb on AI enthusiasm, rising bond yields are quietly reshaping the risk calculus for stock investors, according to Jörg Wiechmann, managing director of the Itzehoer Aktien Club.
Yields on long-term government bonds have surged globally in recent weeks. Investors can now earn more than 5 percent on 30-year US Treasury bonds, while Germany's government must pay nearly 4 percent interest to its creditors.
US national debt surpasses $40 trillion
Wiechmann points to ballooning government debt as a key driver of the bond market unease. The United States has just crossed the $40 trillion debt threshold, and rising interest rates mean the cost of servicing that debt is projected to reach $1.2 trillion this year.
Despite this, Wiechmann does not see an imminent US debt crisis. He notes the country benefits from a powerful economy, the world's largest capital market, and the dollar's status as the global reserve currency, giving Washington considerable financial flexibility. Still, he cautions that even the US cannot let its debt grow faster than its ability to finance it indefinitely.
Tech giants compete with governments for capital
Adding to the pressure, major US technology companies are now competing with governments for fresh capital. These firms are pouring enormous sums into data centers and artificial intelligence, financing part of it through debt. Wiechmann cites Meta, which is currently offering investors interest rates of around 7 percent to attract funding.
When both governments and corporations chase larger sums in capital markets simultaneously, the price of money -- interest rates -- tends to rise further, Wiechmann explains. That dynamic turns a bond market issue into a stock market concern.
Tech stocks face a double hit from rising rates
Higher interest rates raise financing costs for companies and erode profits, particularly future earnings that get discounted more heavily under higher rates, according to Wiechmann. He warns that the current stock market favorites -- US tech companies -- are especially exposed, having taken on significant debt while their shares are priced on high expectations for future profits. "Rising interest rates hit them twice,