AI Stocks Slammed as Investors Flee to Safety and Commodities Spike

Global equity markets stumbled on Thursday as a sharp sell-off in artificial intelligence–linked stocks rippled across major indices. In the U.S., big tech and semiconductor names led declines, while a jump in crude oil prices amplified investors’ anxiety toward risk assets. According to AP, worries about an “AI bubble” and disappointing earnings from several high‑profile companies have sparked doubts that growth expectations may have run too far ahead of reality.

Typically, a stock market pullback pushes money into U.S. Treasurys, but this time the move came with unusually choppy swings in long‑term yields. The 10‑year Treasury yield briefly tumbled as investors sought safety, yet the broader backdrop remains one of persistently high rates. That’s left stocks, bonds and commodities locked in an uneasy standoff, with none offering clear direction.

For now, investors are debating whether the AI sell‑off is merely a healthy reset or the start of a deeper repricing of stretched valuations. At the same time, rising oil and other commodity prices are reigniting inflation fears and complicating the outlook for central bank policy. In the near term, volatility across asset classes is likely to stay elevated, making portfolio‑level risk management and diversification more critical than simple index exposure.