Business · Markets · 58 mins ago
Tech sell-off sends investors toward bonds and safe-haven currencies
Technology shares fell as investors questioned the cost of AI investment on Friday, October 23, hitting markets across Asia and the United States.
The sell-off reflected concern that heavy spending on AI and data centres may not pay off and could weaken the US economy.
Investors moved into US government bonds and safe-haven currencies, including the yen, as they sought less risky assets.
Asian shares fell for a fourth straight week, with Japan's Nikkei down 5% over the week.
The shift to bonds pushed Treasury yields sharply lower, with the 10-year yield dropping below 5% after its biggest daily fall since March 2023.
Markets also cut expectations for Federal Reserve rate rises, while oil prices climbed amid fears of disruption to energy supplies from conflict in the Middle East.
Whether selling deepens or markets rebound remains uncertain, and the sources give no specific next step.
Technology stocks fell globally as investors moved into government bonds and currencies such as the yen.
Asian shares declined on Friday, with Japan’s Nikkei down 1.3% and South Korea’s KOSPI down 1.7%.
The selloff reflected concerns about the large funding needs of artificial intelligence and the risk that a bubble could undermine data-centre investment and US growth.
The flight to bonds helped drive the biggest daily rally in US Treasuries in more than three years.
Markets also reduced expectations of further Federal Reserve rate increases, and a December rate rise was no longer fully priced.
- Who
- Technology investors sold shares and sought safer assets, including sovereign bonds and the yen.
- What
- A technology-stock selloff deepened, while bonds rallied and expectations of Federal Reserve rate increases fell.
- When
- The selloff was reported on October 22 and 23, 2026, with Asian shares falling on Friday, October 23.
- Where
- The selloff affected global markets, including Wall Street and Asian stock markets.
- Why
- Investors were concerned about AI companies’ funding needs and the risk that a bursting AI bubble could hurt investment and the US economy.
This story does not have two clearly opposing sides.
Bloomberg reported that the technology-stock rout had deepened during the week as investors sought safety in Treasuries and currencies such as the yen.
Asian shares fell, while investors moved into sovereign bonds and safe-haven currencies.
The benchmark 10-year US Treasury yield dropped more than 19 basis points overnight before settling at 4.9591%.
- MSCI Asia-Pacific shares excluding Japan
- Fell 0.3% on Friday; down 2.7% for the week
- Japan’s Nikkei
- Fell 1.3% on Friday and 5% for the week
- South Korea’s KOSPI
- Fell 1.7% on Friday; on course for a 4.3% weekly decline
- US 10-year Treasury yield
- Dropped more than 19 basis points overnight; later stood at 4.9591%
- Brent crude
- Reached $114 a barrel, a five-month peak
5 sources
What people are saying
AI is under the cosh
US Treasury bonds are - gasp - working as your hedge again, as the market seems to be real-time repricing the probabilities of a US growth scare off the back of the AI reset.
The question is whether selling accelerates or markets stage another familiar reversal.
We're minded to expect it to snap back above (5%), as we still have inflation/fiscal deficit/AI boom underpinnings to navigate.