AI Stock Selloff Revives Treasury Safe-Haven Demand, Fed Hike Bets Trimmed

A selloff in AI-related equities, driven by concerns over the sustainability of the AI boom, has prompted investors to rotate into U.S. Treasuries, restoring their safe-haven status. This shift has also led to a reduction in market expectations for further Federal Reserve rate hikes. The development signals a potential inflection in risk appetite and a repricing of monetary policy expectations.

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