Tech giants' AI spending spooks investors, boosting US bonds

Global tech shares slumped and US bonds rallied toward their biggest monthly gain in nearly three years on Friday, as investors fled to safety over concerns that massive AI spending may not deliver sufficient returns. Futures pointed to Wall Street falls, including a more than 2.5% drop in the Nasdaq 100. Intel plunged 25% and Amazon fell 6% after results showed heavy cash burn, while Alphabet lost $500 billion in market value as AI spending turned its cash flow negative. European stocks dipped 0.3%, and Asia's Kospi declined 3.5% on chipmaker losses. Investors worry about returns on AI capital spending and potential consumer price hikes. A record-breaking Binance hack drove Bitcoin to a six-week low, while oil rose over 2% on Strait of Hormuz supply risks. Gold fell to $3,970, its lowest since mid-July.