Yields, equities plunge on AI jitters. Treasury yields fell today as markets rotated into safe-haven assets as equities tumbled on worries that upcoming Democrat control of Congress would result in an AI-crackdown. The 2-year yield closed 12 bps lower at 4.46%, while the 10-year yield closed 5 bps lower at 4.83%. Meanwhile, equities saw their worst day since April 2025, with the S&P 500 and NASDAQ closing 4.36% and 5.52% lower, respectively.
Yields fall on AI equity sell-off and move to safe-haven assets. The Nasdaq 100 lost $2.3 trillion in market value today, marking the largest single-day drop on record, while the S&P 500 posted its biggest decline since Liberation Day tariffs were announced in April 2025. Anxiety in the tech sector sparked the rout, as markets anticipate increased AI and data-center regulations following Democrats’ sweep of the midterms, which could restrict growth among chipmakers and data-center suppliers. Treasury yields plummeted as markets turned risk-off amid the equity sell-off, even as oil prices rallied. Brent crude traded near $97 per barrel after falling below $90 in yesterday’s session.
Initial jobless claims match 57-year low. Initial jobless claims fell to 189k in the week ending October 31, down from a revised 195k in the prior week and below expectations of 196k. That reading is the lowest level in fifteen weeks and ties the 57-year low set in July. The four-week moving average also dipped to 195k from a revised 197k. Continuing claims, however, climbed to 1.71 million from a revised 1.69 million, suggesting workers are taking longer to find new jobs. Also today, outplacement firm Challenger reported that US employers announced nearly 44k job cuts last month, a 71% decline YoY and the lowest October total since 2023. Andy Challenger, the firm’s chief revenue officer, explains, “Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work.” The data continues to support the low-hire, low-fire narrative, though markets will look to tomorrow’s nonfarm payrolls report for additional signs on the state of the labor market.
