Tech ETFs saw massive inflows this summer, with investors pouring $52 billion into tech funds since the S&P 500 bottomed in late March, compared to just $4 billion into the rest of the market. This lopsided balance, where $13 has gone into IT for every $1 invested in other industries, hurt yesterday when tech stocks fell on concerns that AI companies may rein in development pace out of safety concerns. Technology megacaps have driven the stock market's advance this year thanks to booming semiconductor spending.

Investors poured almost $13 billion last month into an Invesco ETF tracking the Nasdaq 100. Matt Maley at Miller Tabak & Co warned that if AI CEOs slow development, it raises questions about a slowdown in spending, noting that chip stocks remain more than 20% below their June highs despite great summer earnings. For a quick temperature check on where finance mavens see interest rates heading, look at the junk bond market: borrowers are lining up at least $13 billion in refinancing deals to get ahead of rate hikes.

Authentic Brands, which owns brands such as Guess and Dockers, is selling $4.2 billion of fresh debt, while Mister Car Wash is moving ahead with a $2 billion deal. Europe's high-yield market is set for its busiest week since June as borrowers react to expectations for central banks to embark on monetary tightening to combat elevated inflation.