Stocks slump, bonds leap as AI giants' spending spooks investors

Business Recorder reported on Friday that technology shares fell across Asia as investors questioned whether large artificial-intelligence investments would generate adequate returns. Alphabet lost 12.6% in US trading, while Intel dropped 23% after hours and Amazon declined 7%; Nasdaq 100 futures were down 1.4%.

The retreat extended across regional markets, with South Korea’s KOSPI down 5% on the day and more than 17% for October, while Japan’s Nikkei fell 3%. Investors also sought bonds after the Federal Reserve kept US rates unchanged: the 10-year Treasury yield slipped to 4.91%, taking its October decline to about 37 basis points, while the yen strengthened to 157.47 per dollar. The Bank of Japan was expected to leave rates unchanged later on Friday.