S&P 500 Falls 1.21% as Tech Rout Drives Investors Into Treasuries

U.S. stocks declined amid a sharp technology selloff, pushing the S&P 500 down 1.21% and the Nasdaq down 2.60%. The downturn prompted a major flight to safety into U.S. government debt, reversing weeks of bond selling. Treasury yields fell significantly below 5%, with the benchmark 10-year yield dropping 19.3 basis points to 4.952% in its largest single-day drop since March 2023, while the 2-year yield fell 18.8 basis points to 4.635%. The risk-off rotation was spurred by concerns over artificial intelligence valuations, Middle East geopolitical escalation, and high energy costs.