Nasdaq tumbles while Treasuries soar as Meta rekindles AI spending fears - Financial Times

Meta’s latest update has reignited investor concerns about the scale and durability of AI-related spending, and the market reaction was visible across asset classes. According to the Financial Times, the Nasdaq tumbled while Treasuries soared — a combination that typically signals a shift away from growth-oriented equities and toward the relative safety of government debt.

The move matters because it shows how sensitive markets remain to any signal that AI capital expenditure may be rising faster than near-term returns can justify. When spending expectations climb, investors tend to reassess the earnings timeline for large technology companies, which carry outsized weight in the Nasdaq. At the same time, demand for Treasuries can reflect both risk aversion and changing expectations around growth and interest rates.

What to watch: whether this is a one-day repricing or the start of a broader rotation. Commentary from other large technology firms on AI budgets, updates on capex guidance, and the tone of upcoming economic data will help clarify whether spending concerns are company-specific or sector-wide. For now, the cross-asset reaction underscores how tightly AI investment narratives remain linked to equity and bond market sentiment.