US Treasury yields slip as AI doubts drag Nasdaq, Meta
US Treasury yields took a noticeable dip on Thursday, with investors starting to question whether the AI boom can really keep up its pace.
This uncertainty had people moving their money into safer bets, which dragged the Nasdaq down more than 2%.
Meta's shares also slid nearly 8% after its earnings and news about issuing non-voting shares to fund more AI projects.
The 10-year Treasury yield dropped to 4.953%, reflecting the rush toward safety.
TIPS demand strong, jobless claims fall
With doubts rising about AI-driven growth, Wall Street's attention has shifted away from inflation worries.
Thomas Urano, co-chief investment officer at Sage Advisory in Austin, Texas, pointed out that hardly anyone expects a Federal Reserve rate hike right now.
Demand for inflation-protected securities (TIPS) is strong, showing people still want protection just in case prices jump again.
Meanwhile, jobless claims fell, hinting the job market might be getting stronger even as everyone's playing it safe.