Rates are heading higher "for all the wrong reasons": Nations Indexes

• The 30-year US Treasury yield reached a 19-year high (5.311%), driven by federal deficit and borrowing, not robust economic growth.
• Tech and AI names are vulnerable to higher interest rates due to significant borrowing needs for data center buildout.
• Recommends rotating into 'old economy' sectors like industrials (e.g., John Deere, Caterpillar) that can use AI to improve efficiency.
• Nations S&P 500 Riskdex spiked 20%, indicating increased bearish sentiment for the broader market.
• Nations NVIDIA Riskdex is at the 13th percentile, showing decidedly bullish sentiment for NVDA, with options predicting a ~7% move on upcoming earnings.

Scott Nations discusses rising interest rates, with the 30-year UST yield hitting a 19-year high due to federal borrowing, not economic strength. He suggests rotating from vulnerable AI/tech stocks to 'old economy' industrials that can leverage AI. Market sentiment indicators show increased caution for the broader market but bullishness for NVIDIA ahead of earnings.