S&P 500 Falls 1.21% as Tech Rout Sparks Safe-Haven Flight to Treasuries

U.S. equities faced heavy selling pressure as the S&P 500 dropped 1.21% and the Nasdaq fell 2.60%, driven by an acute rout in technology and artificial intelligence shares. Investors rotated into safe-haven government debt, pushing the benchmark 10-year Treasury yield down 19.3 basis points to 4.952%—slipping below the 5% threshold—and the 2-year yield down 18.8 basis points to 4.635%. The flight to safety intensified amid escalating Middle East tensions, rising oil prices, and widening credit default swap spreads across major AI and tech firms.