AI-driven tech selloff pushes investors into Treasuries despite hot inflation

Investors are rotating into U.S. Treasuries as AI-linked tech stocks and credit come under pressure, even as inflation runs above expectations. The move reflects growing concern over the cost of financing AI expansion and the sustainability of returns, creating a tension with still-strong earnings outlooks. The shift signals a defensive posture in markets amid uncertainty over AI capex and its impact on corporate balance sheets.