Yardeni says AI bubble deflating, not bursting as bond market steps in

Yardeni Research president Ed Yardeni says the AI bubble is deflating rather than bursting, as bond investors ration capital to AI borrowers more sharply than credit rating agencies. Elon Musk warned over the weekend that more than 200 AI cloud firms could fold, while Anthropic filed for an IPO on Monday. Oppenheimer's Ari Wald sees lower highs in small caps and credit that could undermine market rallies and set up a reset in 2027.