US Stock Market Highlights: Dow Jones crashes 500 pts, Nasdaq over 2.5% as AI cash burn fears spark tech selloff

Investors are returning to long-dated government debt as risk-free payouts near multi-decade highs prove increasingly difficult to ignore amid equity market volatility. Ten-year US Treasury yields peaked near 5.4% this month while Japanese yields hit a 30-year high of 3.14%, prompting major asset managers including JPMorgan, Aegon, and Allianz GI to extend duration. A global gauge of government bonds maturing in 10 years or more returned 2.68% in October, marking its first month of outperformance against short-term debt since February as investors seek safe-haven assets away from tech sector pressures.

Despite the recent rally, fund managers caution that broader risks including energy-driven inflation, fiscal deficits, and political uncertainty surrounding the US midterm elections remain unresolved. Doubts linger over Federal Reserve policy commitments and European fiscal stability, leading some strategists to view the price surge as a temporary pause rather than a permanent structural turn. However, the retreat in yields provides timely relief for the US Treasury Department ahead of its quarterly refunding announcement, while also spurring demand for long-dated Japanese, UK, and German sovereign debt.