AI Concerns over capital spending intensify, weighing on U.S. technology stocks as funds shift to U.S. Treasuries

AT A GLANCE

The report states that AI concerns over returns on capital spending are increasing, weighing on U.S. technology stocks as funds flow into U.S. Treasuries.

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AI Capital spending triggers a crisis of confidence, with funds shifting to U.S. Treasuries as a safe haven

BlockBeats reports that October 24, as AI giants’ capital spending continues to swell, the market has begun questioning whether the related investments can generate sufficient returns. U.S. technology stocks came under pressure, while funds accelerated their flow into U.S. Treasuries. The Nasdaq 100 index recorded its worst 2025-year April performance since 2 in a week, while a basket of AI-related stocks fell 4.9%this week, and Meta’s share price fell by more than 9%.

In the bond market, the 10-year U.S. Treasury yield briefly rose to 5.14%at the beginning of the week, then fell rapidly, closing at 4.97%on Thursday, its first break below 1 in 5%months. Bond ETF funds attracted approximately 58000000000 USD in inflows this month, accounting for ETF of total 38%inflows, indicating a rise in investors’ defensive sentiment.

At the core of market concerns is the fact that AI companies and governments worldwide are simultaneously expanding their financing needs and competing for limited capital resources. Anthropic’s commitment to computing expenditure over the coming years could reach as much as 750000000000 USD, while Meta also plans to invest heavily in computing and AI infrastructure. Meanwhile, the U.S. government continues issuing debt, intensifying pressure on the supply and demand of capital.

The credit market has also shown signs of stress. The U.S. investment-grade corporate bond credit-risk indicator rose to its highest level since March, while the yield on CCC-rated bonds rose to 15.85%, its highest level since 2020 years ago. Analysts believe that the long-term prospects of AI are not the same as short-term investment returns. As the cost of capital rises, companies with weaker financing capabilities may come under pressure first, and the market is also reassessing the risks of highly valued assets.

Original link https://m.theblockbeats.info/flash/373492

Key points

Nasdaq 100 index recorded its 2025-year April worst 2 weekly performance.
A basket of AI-related stocks fell 4.9%this week, while Meta’s share price fell by more than 9%。
10-year U.S. Treasury yield briefly rose to 5.14%at the beginning of the week, then fell to 4.97%on Thursday, its first 1-month break below 5%。
Bond funds ETF attracted approximately 58000000000 USD in inflows this month, accounting for ETF of total 38%。
Anthropic’s commitment to computing expenditure over the coming years could reach as much as 750000000000 USD。
The U.S. investment-grade corporate bond credit-risk indicator rose to its highest level since March, while the yield on CCC-rated bonds rose to 15.85%, its highest level since 2020 years ago.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The report describes a market trade-off: investors are concerned that after AI companies invest heavily, short-term returns may be insufficient, causing technology stocks to weaken; meanwhile, bonds ETF attract inflows, and U.S. Treasury yields retreat from their highs at the beginning of the week. Credit-market indicators also show rising financing pressure on lower-rated bonds.

Why it matters to readers

These changes show that the market is reassessing AI investment, highly valued technology assets, and corporate financing risks. When the cost of capital rises, companies with weaker financing capabilities may come under pressure earlier.

Beginners may monitor technology stock prices, 10-year U.S. Treasury yields, bond ETF flows, and yields on lower-rated bonds, but should not conclude that a trend has been established based solely on a single report.

Risks and unknowns

The article provides no independent evidence for its attribution of the shift of funds into U.S. Treasuries, the rise in investors’ defensive sentiment, or the core of market concerns.
Anthropic’s computing expenditure commitment is described using the word “could”; the specific amount has not been confirmed.
Meta’s plan for major investment does not provide a specific amount or time frame.
The report does not specify the original sources or calculation methodologies for the various market data points.
AI It remains uncertain whether capital spending can generate sufficient returns.

AI Concerns over capital spending intensify, weighing on U.S. technology stocks as funds shift to U.S. Treasuries

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