Nasdaq 100 Sheds $2 Trillion as Investors Flee to Bonds

Investors moved from AI shares toward safe-haven Treasuries in October, as the IMF flagged a possible AI-related correction.

Updated on Nov. 3, 2026 in Stock Markets

Isometric editorial illustration of descending steel blocks beside a stack of gold-rimmed cream bond certificates on a slate floor, suggesting a shift from risk to safety. — Investors pulled money from AI-linked Nasdaq 100 shares in October, erasing more than $2 trillion in value as the 10-year Treasury yield fell nearly 20 basis points on October 22. AI Illustration. Upload story photo >

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The Nasdaq 100 lost more than $2 trillion in market value in October as investors shifted from AI shares toward safe-haven bonds. On October 22, the yield on the 10-year U.S. Treasury fell nearly 20 basis points, the steepest one-day drop since early 2023.

Why it matters

Investors questioned the payoff from heavy artificial intelligence spending, pulling money out of AI-linked equities. A downturn in AI investment or profitability could prompt related assets to be repriced, and leverage could magnify the effects.

The Nasdaq 100 shed more than $2 trillion in market value in October, while the 10-year Treasury yield fell nearly 20 basis points on October 22, its steepest one-day decline since early 2023. The source does not indicate whether the AI-driven sell-off will continue.

The players

International Monetary Fund (IMF)

The IMF is an international organization of 190 member countries that promotes global monetary cooperation and financial stability.

The details

Investors shifted from AI shares toward safe-haven bonds during October. The IMF, in its October 12 Global Financial Stability Report, listed a possible AI-related market correction and a sharp rise in sovereign bond yields as risks.

2023: Start of 14 publicly disclosed financing transactions later reviewed by the IMF.
Since 2024: Hyperscalers' share of global investment-grade bond issuance rose from below 1% to 10%.
October 12, 2026: IMF Global Financial Stability Report flagged AI correction risk.
October 22, 2026: 10-year Treasury yield fell nearly 20 basis points.
October 2026: Nasdaq 100 lost more than $2 trillion in market value.

Market Dynamics

The IMF's October 12 Global Financial Stability Report warned that an AI-related market correction was a risk, and the October sell-off in AI-linked shares follows that warning. The report examined 14 transactions tied to $1.4 trillion in future revenue commitments, with about $320 billion of debt assumed through circular-financing arrangements.

Investors with exposure to AI-linked equities or the Nasdaq 100 may see their portfolios reprice if the sell-off continues. Bond yields falling sharply can affect borrowing costs and fixed-income holdings.

The takeaway

The October sell-off shows how concentrated AI exposure can move broad indexes quickly. Readers with significant AI-linked holdings should track how leverage and related asset repricing evolve.