Tech stocks fell for a second consecutive day. Nasdaq 100 futures slid by 1.9%, and S&P 500 futures lost roughly 0.9%. South Korea's Kospi, widely seen as a barometer of global AI flows, dropped by 3.5%, and the regional MSCI Asia-Pacific index fell by 1.2%. Investors moved out of AI names into safe havens, with US Treasuries and the Swiss franc the main beneficiaries. Even gold was ignored as high inflation and attractive yields dominated flows.

What triggered the move was another round of disappointing results. Amazon tumbled by 7.3% in after-hours trading, while Intel plunged by 23%, both reigniting concerns about capex. Alphabet already suffered a record one-day drop after its results, and Samsung lost 4.1% on Thursday and another ~3% today after profits missed forecasts and the company delayed its shareholder return program. SK Hynix, which had rallied on Wednesday on its report, retreated by 7% today. The three-day uptick in tech that began earlier this week has now been wiped out.

The market's worry is not demand for AI but the price and the speed of monetization. Wednesday's enthusiasm that big companies continue to spend has flipped into fear that spending may not pay back quickly. For now, the damage is concentrated in tech — over 400 S&P 500 constituents still rose on Thursday, while money rotated into defensive assets.

Bond yields strengthened on this risk repricing. US Treasury yields fell by at least 2 basis points across the curve and continued declining through the session; 10-year yields in Australia, Japan, and New Zealand moved about 5 bps lower. US yields are down nearly 40 bps for October and head for the first monthly decline since February.

Crypto markets got another shock: Bitcoin dropped by 5% to about $76,500 after Binance, the world's largest exchange, suspended all deposits and withdrawals following a hack. That incident compounds trust issues in a market already suffering risk-asset outflows.

Geopolitics returned to the front page. Brent crude rose by 1% to about $116/bbl on signs the US may resume strikes on Iran, raising the prospect of renewed regional disruption and supply shocks. Gold slipped below $4,000/oz, and silver fell by 2.4%, heading for its weakest close since November.

In my view, the US market looks set to open lower, particularly in tech, and Treasury yields should continue to drift lower if the AI sell-off persists. Only fresh evidence that AI investments are generating profits will halt the rotation. If oil keeps rising on Iran risk, pressure on equities and gold will intensify, leaving Treasuries and the franc as the main beneficiaries of the sell-off.

As for S&P 500 technicals, the immediate task for buyers is to overcome the resistance level of $7,656. That would signal upside and open the path to $7,679. Holding $7,698 would further strengthen bulls' positions. If the price moves lower amid fading risk appetite, buyers should defend near $7,633. A break below that level would likely push the index to $7,607 and open the way to $7,574.