AI Spending Doubts Push Bond ETF Inflows to $58 Billion as Tech Stocks Slide

Questions about returns from expanding artificial intelligence budgets weighed on U.S. technology stocks as investors shifted toward bonds, with bond ETFs drawing about $58 billion in October.

The Nasdaq-100 posted its worst two-week performance since April 2025. A basket of AI-related stocks fell 4.9% for the week, and Meta shares fell more than 9%. The moves add to the debate around AI spending concerns and U.S. technology stocks.

The 10-year U.S. Treasury yield reached 5.14% at one point early in the week, then closed at 4.97% Thursday. It was the first close below 5% in a month. Bond ETF inflows this month accounted for 38% of all ETF inflows, showing investors’ increased demand for bonds.

Financing needs are another focus as AI companies and the U.S. government seek capital at the same time. Anthropic’s computing spending commitments over the next several years could reach $750 billion. Meta also plans substantial spending on computing and AI infrastructure, while the U.S. government continues to issue debt.

Credit markets have shown strain alongside the moves in stocks and Treasuries. A measure of risk in U.S. investment-grade corporate debt reached its highest level since March. Yields on CCC-rated bonds rose to 15.85%, their highest level since 2020.

The figures put attention on whether near-term returns from AI investments can keep pace with the cost of building computing capacity. Higher financing costs may put more pressure on companies with weaker access to capital.