Investors dive into bonds as global AI tech selloff continues
Investors fled to the safety of bonds on Friday as stocks extended their slide in both Europe and Asia after worries around AI wiped trillions of dollars off stock markets.
Investors rushed to bonds as stocks continued their decline globally due to concerns about the AI boom, leading to trillions of dollars being wiped off major U.S. indexes. European and Asian indexes fell more than 1% early on, with the FTSEurofirst and STOXX 600 benchmarks plummeting. Wall Street experienced a mild rebound, but Asia's Nikkei and KOSPI indexes dropped by around 6%.
Japan's Nikkei had its deepest one-day drop since April 2025, while Taiwan's stocks fell more than 8% at one point. Government bond markets rallied, and the U.S. dollar, Japanese yen, and Swiss franc were drawn into safe haven flows. The 10-year U.S. Treasury note yield hovered near its lowest level since mid-September, and Japanese government bond yields dropped to the lowest level since June.
Investors are now questioning the future of AI and its impact on the market, as the sector continues to face significant challenges.
Written by urgent.news from Global News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
