U.S. 10-year Treasury yields increased as investors shifted to safer assets following a sharp decline in technology stocks due to concerns over the profitability of artificial intelligence (AI) companies. Meanwhile, rising military tensions in the Middle East, including reports of U.S. plans to attack Iran, contributed to a significant rise in international oil prices.
According to the International Financial Center, on October 22, the yield on U.S. 10-year Treasury bonds fell by 0.17 percentage points to 4.95%, compared to the previous trading day. The yield on German 10-year bonds also dropped by 0.09 percentage points to 3.33%, influenced by the U.S. Treasury market.
The ongoing concerns about the profitability of AI-related companies have heightened risk aversion among investors.
U.S. stock markets declined as fears over deteriorating profitability from AI investments coincided with instability in the Middle East. The S&P 500 index fell 1.21% to 7,663.4, while the Nasdaq composite dropped 2.6%, marking its largest decline since June 5. Major tech stocks, including Nvidia (-4.4%), SpaceX (-9.1%), and Micron Technology (-6.3%), experienced significant losses.
In contrast, international oil prices surged amid escalating military tensions in the Middle East. Brent crude oil rose by 4.00% to $113.17 per barrel, while West Texas Intermediate (WTI) crude increased by 2.4% to $99.47 per barrel. The price of Brent crude is at its highest level since May 4.
The U.S. dollar weakened, with the dollar index falling 0.15% to 101.62. This decline is attributed to market expectations of a freeze in U.S. interest rates for October and a strengthening yen. The yen appreciated by 0.87%, while the euro fell by 0.14%.
* This article has been translated by AI.
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