U.S. 10-year Treasury yield falls to 4.94% as stocks retreat
Key Facts
The U.S. 10-year Treasury yield fell to 4.94% on October 29, compared with 5.05% late the previous day, according to the Associated Press. The decline came in a session when major U.S. stock indexes fell, with concerns focused on technology stocks and artificial intelligence investment. Reuters said yields declined after inflation data were released, a day after the Federal Reserve left interest rates unchanged. Reuters also noted that the U.S. economy grew more strongly than expected in the third quarter. Market moves reflected simultaneous pressure on technology stocks and falling bond yields, despite strength in some economic data.
The Nasdaq ended Thursday’s session down 1.4%, while the S&P 500 and Dow Jones each fell 0.3%, according to the Associated Press. The S&P 500’s decline was its first in four sessions, while the Nasdaq recorded the largest drop among the three indexes. The agency linked the losses to a decline in Alphabet and investor concerns about returns on artificial intelligence investments. Amazon closed at $243.79 a share on October 29, compared with $254.60 the previous day. Intel closed at $92.07, after $95.53 in the previous session.
Shares in both companies fell during regular trading, while concerns about Amazon were also tied to cash spending and its fourth-quarter outlook. The company reported net sales of $201.9 billion in the third quarter, up 12% year over year. Sales at its AWS cloud computing unit rose 39% to $46.0 billion, its fastest growth rate in nearly five years. But free cash flow showed an outflow of $42.4 billion over the 12 months ended September 30. Amazon attributed this mainly to a $94.8 billion year-over-year increase in purchases of property and equipment, net of proceeds from sales and incentives.
Amazon forecast fourth-quarter sales of between $240.0 billion and $247.0 billion, equivalent to year-over-year growth of between 12% and 16%. The company said it expects cash capital expenditures of about $220 billion for 2026. The outlook follows third-quarter sales growth alongside continued high spending on property and equipment related to artificial intelligence investments. On the economic front, U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter, compared with 2.2% in the second quarter. Data from the Bureau of Economic Analysis showed the personal consumption expenditures price index rose 3.6% year over year in September, after 3.4% in August, and the bureau set November 25 as the date for its next release.