U.S. Treasury securities recorded their strongest daily performance since August 2025, with yields declining across the curve as investors rotated out of equities and into perceived safe-haven assets.
The rally coincided with sharp declines in technology and growth stocks. The S&P 500 fell 1.4 percent while the Nasdaq dropped 2.8 percent, with companies leading AI infrastructure spending hit hardest. Treasury demand typically rises during equity selloffs as investors prioritize capital preservation.
The magnitude of the Treasury rally suggests conviction in the safe-haven trade, comparable to market movements observed over a year ago. The capital rotation reflects a re-evaluation of risk exposure in high-growth sectors tied to AI development.
