From AI Frenzy to a Return to Risk Aversion: The "Fission" Moment for the Stock-Bond Linkage Logic Has Arrived!

Over the past week, U.S. Treasuries are showing initial signs of reclaiming their traditional status as a safe-haven assetwhich could catch off guard investors betting that this year's bond market selloff will deepen further... As market concerns grow over the earnings prospects of leading AI companies and their potential impact on the broader economy, U.S. Treasury yields and U.S. stocks fell together last week: the 10-year Treasury yield dropped about 17 basis points, while the Nasdaq 100 index plunged 5.5%.