Key Takeaways
- • Aptus Capital Advisors portfolio manager David Wagner argues that a December rate hike by the U.S. Federal Reserve would be "a misstep" as growth outside the artificial intelligence sector weakens.
- • Wagner says AI remains the dominant market theme, and a potential Democratic sweep in Congress is unlikely to derail data centre buildout, with economic growth and jobs taking priority.
- • Wagner identifies the bigger risk to the AI trade as mounting strain on credit markets, as companies increasingly borrow to finance their expansion.
Summary
Aptus Capital Advisors' David Wagner, speaking on CNBC's Squawk Box Asia, said a rate increase by the U.S. Federal Reserve in December would be a mistake, given that growth outside the artificial intelligence sector is weakening. He characterized AI as still the main driver of market sentiment.
Wagner said a Democratic sweep in Congress is unlikely to derail the buildout of data centres, since economic growth and employment are the priorities for policymakers. His view suggests that the investment cycle supporting AI infrastructure is expected to continue regardless of the political outcome.
The more significant threat to the AI trade, according to Wagner, is the growing pressure on credit markets. Companies are increasingly turning to debt to fund their expansion, and he sees this borrowing dynamic as the key vulnerability for the sector rather than political or monetary policy risk alone.
The interview was brief and the source material does not provide additional figures, deal values or specific credit market data.
Wagner said a Democratic sweep in Congress is unlikely to derail the buildout of data centres, since economic growth and employment are the priorities for policymakers. His view suggests that the investment cycle supporting AI infrastructure is expected to continue regardless of the political outcome.
The more significant threat to the AI trade, according to Wagner, is the growing pressure on credit markets. Companies are increasingly turning to debt to fund their expansion, and he sees this borrowing dynamic as the key vulnerability for the sector rather than political or monetary policy risk alone.
The interview was brief and the source material does not provide additional figures, deal values or specific credit market data.
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