A global sell-off in Artificial Intelligence (AI) stocks on Thursday, October 22, 2026, triggered a flight to safety, with the Japanese Yen strengthening by 0.3% against the dollar by October 23, reaching its highest level in over a month. This market movement reflects growing investor doubts about whether the substantial capital flowing into AI will yield proportional profits.

This shift matters because it indicates a reevaluation of the AI sector's value and sustainability, potentially impacting investment strategies and the broader stability of global financial markets.

What the Records Show

Meta Platforms’ Q3 2026 earnings report played a significant role. Despite reporting stronger revenue than analysts expected, its profit fell short. Meta also projected its 2026 capital expenditures for AI investments to be between $135 billion and $145 billion and announced plans to create a new class of stock to raise capital.

In response to these declines, investors moved towards traditional safe-haven assets. The Japanese Yen recorded its strongest daily gain in almost a month on Thursday, October 22. By Friday, October 23, the Yen had strengthened 0.3% to 156.28 per dollar, its strongest level in over a month. U.S. Treasury yields also hovered near a one-month low. Carol Kong, a strategist at Commonwealth Bank of Australia, stated that earnings reports from major U.S. technology companies had "cast doubt on the US growth narrative led by AI, making the yen more favored than the US dollar as a Safe Haven asset". Goldman Sachs, in an October 23 note, suggested the Yen had become a more attractive option for portfolio protection. Separately, AI company Anthropic is preparing for a potential flotation, with investors discussing a valuation of around $1.5 trillion.

The Timeline

What Changed

What the Subject Has Said Publicly

What We Could Not Confirm