Financial markets are facing three simultaneous pressures: bond selloffs, declines in emerging-market currencies and growing doubts about the returns on artificial intelligence investments. The Nasdaq 100 lost more than $2 trillion in market value in October, while Intel shares fell 28.6 % after the company reported heavy artificial intelligence-related cash burn. Amazon, Meta and Alphabet recorded negative free cash flow in their latest reported quarter, with Amazon’s shortfall reaching nearly $35 billion. The International Monetary International warned that a selloff linked to artificial intelligence could spread to bond markets, as cloud hyperscalers now account for 10 % of global investment-grade bond issuance. Rising sovereign yields, with the French ten-year yield near its 2012 level and the US ten-year Treasury yield around 5 %, are leaving investors with less room to absorb further shocks.
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