AI spending fears spark global tech selloff; bonds rally

· Economy · United States

A renewed rout in AI-related shares pulled markets lower worldwide on Thursday, with the Nasdaq Composite falling 2.6% in its worst day since June and the S&P 500 down 1.2%. Meta sank nearly 7% as heavy AI spending pushed free cash flow negative, and CoreWeave has lost 36% in October as its bond yields spiked. Investors fled to the safety of government debt: the 10-year Treasury yield tumbled below 5% to its lowest in nearly a month, and Treasuries had their best day in more than two years. Asian stocks were set to extend losses on Friday, while the yen strengthened as traders sought havens.

Why it matters：The selloff shows investors beginning to price the cost, not just the promise, of the AI buildout, a shift that could reshape financing for data centres and chipmakers globally.

Key points

  • Nasdaq fell 2.6%, its worst day since June
  • Meta dropped nearly 7% as AI spending turned free cash flow negative
  • 10-year Treasury yield fell below 5%, lowest in nearly a month

Sources (original reporting)

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