New Delhi, July 27 -- The US credit outlook is increasingly levered to AI investment confidence, while consumer-facing sectors and private credit markets face mounting headwinds, according to a report by Fitch Ratings.

Artificial intelligence investment grew into a central driver for the United States economy and capital markets. IT capital expenditure expanded 18 per cent year-on-year in the first quarter of 2026, contributing 1.4 percentage points directly to gross domestic product growth. Increased debt funding for hyperscaler capital expenditures subsequently supported a 26 per cent year-on-year surge in US corporate bond issuance during the first half of 2026.

Detailing market absorption risks, the Fitch Ratings report stated, "The...