CNBC analysis suggests that despite the widespread belief that the AI theme is still in its early stages and economic momentum is strong, the current market is exhibiting some late-cycle characteristics. The price-to-earnings ratio of the S&P 500 has compressed from 23 times a year ago to 19 times, reflecting investor caution regarding current record profit margins and potentially slower growth next year. Simultaneously, rising U.S. government bond yields are impacting the overall cost of capital for businesses. The analysis posits that the bond market is offering a buffer with its best value in years, in the face of potential risks posed by AI tech stocks dominating indices.