AI spending fears trigger global tech selloff, bond surge

Global tech stocks slumped Friday as investors fled to safe-haven assets, triggered by fears that massive AI spending by major companies may not yield adequate returns. Alphabet shares plunged 12.6%, erasing $500 billion in market value, while Intel and Amazon also dropped sharply. The selloff spread across Asian markets, with South Korea's KOSPI falling 5% and Japan's Nikkei down 3%. Bond prices surged, pushing 10-year Treasury yields to their largest monthly drop since December 2023, as the Federal Reserve's decision to hold rates steady added to the risk-averse mood. The Bank of Japan was expected to keep rates unchanged Friday, capping a week of central bank meetings. Haven currencies like the yen and Swiss franc strengthened, while a record-breaking hack at Binance further dampened sentiment across cryptocurrency and related stocks.