# AI Stock Sell-Off Drives Yen to One-Month High

> 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.

By PrimaryBrief newsroom · Published 2026-10-26T12:13:17.241224Z
Canonical: https://primarybrief.com/article/ai-stock-sell-off-drives-yen-to-one-month-high-516c6800

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 [1][5]. 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
The market rout primarily impacted major AI-related technology companies. Nvidia, a prominent chipmaker, saw its shares fall 4.4% [12][23]. Advanced Micro Devices (AMD), another key player in the semiconductor industry, experienced an approximately 8% drop in a single trading session [12]. Cloud computing provider CoreWeave, which rents Nvidia's AI chips to customers, was particularly affected, dropping 10.1% due to concerns about its debt [4][11][14].

Meta Platforms’ Q3 2026 earnings report played a significant role. Despite reporting stronger revenue than analysts expected, its profit fell short [11][12]. 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 [12][21].

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 [1]. By Friday, October 23, the Yen had strengthened 0.3% to 156.28 per dollar, its strongest level in over a month [1][5]. U.S. Treasury yields also hovered near a one-month low [1]. 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" [9]. Goldman Sachs, in an October 23 note, suggested the Yen had become a more attractive option for portfolio protection [8]. Separately, AI company Anthropic is preparing for a potential flotation, with investors discussing a valuation of around $1.5 trillion [2][16].

## The Timeline
The equity sell-off intensified on Thursday, October 22, 2026, as investors began questioning the long-term sustainability of the AI investment boom [1][15]. This concern drove a widespread risk-off movement across markets [13]. By Friday, October 23, the Yen had extended its rally, climbing to its highest level against the dollar in more than a month [5].

## What Changed
Investor sentiment shifted from widespread enthusiasm for AI investments to a more cautious stance, emphasizing the need for tangible profitability from substantial AI spending [1][9][12]. This change led to a divestment from AI-centric tech stocks and a corresponding increase in demand for safe-haven assets like the Japanese Yen and U.S. Treasuries [1][5][7].

## What the Subject Has Said Publicly
Meta Platforms' Q3 2026 earnings report outlined its substantial planned capital expenditures for AI, totaling $135 billion to $145 billion, and its intent to issue new stock to finance these investments [12][21]. Carol Kong of Commonwealth Bank of Australia publicly linked the yen's strength directly to doubts about the AI-driven U.S. growth narrative following major tech earnings [9]. Goldman Sachs also issued a note on October 23, highlighting the Yen's increased attractiveness as a portfolio hedge against AI-driven market shocks [8].

## What We Could Not Confirm
We could not confirm the exact timeframe for how long the investor shift away from AI stocks might persist or whether this marks a sustained market correction for the AI sector. The full extent of broader economic impacts beyond currency shifts and tech stocks was also not clear from the available records.

## Evidence cited
1. (October 23 2026) Yen rally accompanies a retreat in Treasury yields (financevelix.com) — https://financevelix.com/
2. (October 15 2026) Some investors push Anthropic to cut IPO valuation to $1.5 trillion - report (investing.com) — https://investing.com/
3. (October 23 2026) Sr. Strategist. Fri, 23 Oct 2026, 09:02. Add us as preferred source on Google. Borrowing costs in Japan at or near 0% have funded leveraged positions across global markets for years, and AI stocks are among the assets built on that cheap money. The yen carry trade affects tech stocks because capital borrowed in yen and hedged through the currency market flows into risk assets, so any strain on that funding can pull leverage back out. That strain is now showing up as the Nasdaq  (stonex.com) — https://stonex.com/
4. AI stocks drop on global markets, oil prices rise (www.theguardian.com) — https://globalbankingandfinance.com/
5. (October 23 2026) HomeForex MarketingTech Selloff Sparks Haven Demand, Yen Hits Over One-Month High Ahead of BOJ and Fed Decisions. Forex Marketing. 23/10/2026. Written by FXCG. As the selloff in technology stocks intensifies, investors are flocking to traditional safe-haven assets including the yen, Japanese government bonds and US Treasuries. The yen extended its rally and climbed to its highest level in more than a month. After weeks of tight range-bound trading, USD/JPY broke through resista (fxcg.com) — https://fxcg.com/
6. (October 23 2026) *USD/JPY fell to 156.86, a five-week low, as technology sell-offs and weaker U.S. Treasury yields boosted demand for the yen. *Hawkish BoJ commentary and September inflation at 2.1% reinforced expectations of a potential December rate hike, while intervention concerns near 160 added support. *The October 28 Fed meeting and October 30 BoJ decision are key catalysts. Continued risk aversion and lower U.S. yields could push USD/JPY lower, while renewed dollar strength may lift it  (puprime.com) — https://puprime.com/
7. (October 23 2026) Triggered by AI-related concerns leading to a sell-off in tech stocks, safe-haven demand has pushed up Japanese government bonds and the yen. The yield on Japan's 10-year government bond fell to 2.78%, while the yen rose to a one-month high, touching 156.08 yen per US dollar. Analysts pointed out that disappointing earnings reports from US tech companies have led capital to flow into traditional Safe Haven assets. The yen has regained favor due to narrowing interest rate differ (longbridge.com) — https://longbridge.com/
8. (October 26 2026) Goldman Sachs Says Yen Is an Effective Hedge Against AI-Driven Market Shocks (bloomingbit.io) — https://bloomingbit.io/
9. (October 23 2026) Commonwealth Bank of Australia strategist Carol Kong said the yen was more favored than the dollar as a safe-haven asset. (binance.com) — https://binance.com/
10. Anthropic’s Claude AI model accessed Georgia voter data in US (www.theguardian.com) — https://www.theguardian.com/technology/2026/oct/26/anthropics-claude-ai-model-accessed-georgia-voter-data-in-us
11. AI stocks drop on global markets, oil prices rise (www.theguardian.com) — https://www.theguardian.com/technology/2026/oct/22/ai-stocks-drop-global-markets-oil-prices-rise
12. US tech stocks tumble as investors fret over AI spending (www.aljazeera.com) — https://www.aljazeera.com/economy/2026/10/23/us-tech-stocks-tumble-as-investors-fret-over-ai-spending
13. Global stock markets hit by fresh tech rout amid AI fears and rising oil prices – business live (www.theguardian.com) — https://www.theguardian.com/business/live/2026/oct/23/global-stock-markets-tech-rout-ai-fears-oil-prices-business-live
14. Stocks fall on worries over AI investment, oil prices (www.latimes.com) — https://www.latimes.com/business/story/2026-10-22/stocks-fall-on-worries-over-ai-investment-oil-prices
15. Stocks fall on worries over AI investment, oil prices (www.washingtontimes.com) — https://www.washingtontimes.com/news/2026/oct/22/stocks-fall-on-worries-over-ai-investment-oil-pric/
16. The Guardian (bsky.app) — https://bsky.app/profile/theguardian.com/post/3kf22m5558t2l
17. Trump intensifies anti-Muslim rhetoric against Abdul El-Sayed at Michigan rally – US politics live (www.theguardian.com) — https://www.theguardian.com/us-news/2026/oct/26/trump-intensifies-anti-muslim-rhetoric-against-abdul-el-sayed-at-michigan-rally-us-politics-live
18. Trump administration: RFK's sweeping changes place new vaccines in limbo (www.theguardian.com) — https://www.theguardian.com/us-news/2026/oct/25/trump-administration-rfk-vaccines-somalia-floods-us-south-west-storms
19. Fixer, financier, spymaster: how the UAE's Sheikh Tahnoon is setting his sights on AI dominance – podcast (www.theguardian.com) — https://www.theguardian.com/world/2026/oct/26/uae-sheikh-tahnoon-ai-dominance-podcast
20. Yen rallies as global tech rout sparks flight to safety (www.ft.com) — https://www.ft.com/content/8948193b-438b-4d71-a0b1-31dff56fc308
21. sellthenews.org (sellthenews.org) — https://sellthenews.org/news/2026/10/24
22. Is the AI Bubble Bursting? Experts Weigh In (markets.com) — https://markets.com/news/article/is-the-ai-bubble-bursting-experts-weigh-in
23. The Great AI Stock Selloff of October 2026: A Perfect Storm for Tech Investors (intellectia.ai) — https://intellectia.ai/news/the-great-ai-stock-selloff-of-october-2026-a-perfect-storm-for-tech-investors
24. Are the Market's Perma-Bulls Getting Scared? (www.morningstar.com) — https://www.morningstar.com/news/market-updates/20261026-are-market-s-perma-bulls-getting-scared
25. (October 24 2026) Yen firms as 'AI-driven' growth story questioned - analyst (abs-cbn.com) — https://abs-cbn.com/
26. (October 21 2026) Dollar firms as investors weigh Middle East conflict, Fed rate outlook; yen dips (kitco.com) — https://kitco.com/
27. (October 13 2026) IMF warns of AI-related market correction, cyber threats as global financial risks grow (thehindu.com) — https://thehindu.com/
28. (October 13 2026) International Monetary Fund warns of AI-driven market correction in global economy (irishtimes.com) — https://irishtimes.com/
29. (October 13 2026) IMF warns AI market correction could threaten global financial stability (aa.com.tr) — https://aa.com.tr/
30. AI stocks drop on global markets, oil prices rise (www.theguardian.com) — https://theguardian.com/technology/2026/oct/22/ai-stocks-drop-global-markets-oil-prices-rise
31. (August 07 2026) AI Investment Will Hit $1 Trillion Globally in 2026, Goldman Sachs Research Says (goldmansachs.com) — https://goldmansachs.com/
32. (October 14 2026) CoreWeave bonds plunge, yield hits 15% — warning sign for AI infrastructure financing (biggo.com) — https://biggo.com/
33. (October 26 2026) Global Market: BOJ nears historic inflation milestone, shifts focus to rate hikes (economictimes.com) — https://economictimes.com/
34. (August 03 2026) The Dark Side of the AI Boom (substack.com) — https://substack.com/
35. (August 04 2026) Global AI investment hits $1 trillion according to Goldman Sachs (iafrica.com) — https://iafrica.com/
36. (October 17 2026) Anthropic IPO: Investors Discuss $1.5 Trillion Valuation Amidst Shifting Market Dynamics (venturemagazine.net) — https://venturemagazine.net/
37. (October 17 2026) Anthropic IPO Valuation Could Drop $500 Billion as Investors Reconsider $2 Trillion Price Tag (coinpaper.com) — https://coinpaper.com/
38. (October 16 2026) Anthropic IPO valuation talk cut from $2 trillion to $1.5 trillion as investors discuss slowing revenue growth (financefeeds.com) — https://financefeeds.com/
39. (October 16 2026) CoreWeave Bond Yields Hit 15% as Tech Selloff Accelerates (morningstar.com) — https://morningstar.com/
40. (October 14 2026) CoreWeave Bond Yields Hit 15 Percent on October 14, 2026 Amid Tech Sell-Off (wisevoter.com) — https://wisevoter.com/
41. (October 18 2026) CoreWeave Bond Yields Climb to 15%: Trouble for Nvidia? (primexbt.com) — https://primexbt.com/
42. (October 21 2026) Meta Posts $64.6 Billion In Revenue, Announces Stock Split (forbes.com) — https://forbes.com/
43. (October 22 2026) Meta Stock Falls Despite Strong Q3, Raised Guidance. Here's Why (247wallst.com) — https://247wallst.com/
44. (October 22 2026) Meta Platforms, Inc. (META) Q3 2026 Earnings Call Transcript (seekingalpha.com) — https://seekingalpha.com/
45. CoreWeave Trading Down 10.1% (marketbeat.com) — https://marketbeat.com/
46. (October 22 2026) Meta, Tesla, IBM Earnings: Tech Sector in Focus as AI Investment Expands (plus500.com) — https://plus500.com/
47. (October 26 2026) Goldman Sachs: Yen Becomes More Attractive Hedge Against AI Market Shocks (futunn.com) — https://futunn.com/
48. (October 26 2026) Goldman Sachs: Yen now an 'attractive hedge' against AI-driven market shocks (livemint.com) — https://livemint.com/
49. (October 25 2026) BOJ to Leave Interest Rates Unchanged Amid Inflation Risks: Report (tradingview.com) — https://tradingview.com/
50. (October 21 2026) BoJ seen keeping interest rates unchanged at October 29th-30th policy meeting - Kyodo (newsquawk.com) — https://newsquawk.com/
51. (October 26 2026) USD/JPY remains near 157 ahead of BOJ meeting (economies.com) — https://economies.com/
52. (October 22 2026) What to Watch at the Bank of Japan's 30 October Meeting (ground.news) — https://ground.news/
53. (October 22 2026) NVIDIA Corp (NVDA) moved down by 3.95% on 2026-10-22 (tradingkey.com) — https://tradingkey.com/
54. (October 23 2026) Lam Research Earnings Spark Sector-Wide Selloff, Erasing $200 Billion in Market Value as AI Infra Bubble Fears Mount (techtimes.com) — https://techtimes.com/
55. IMF Warns of AI Investment Risks Amidst Market Volatility (www.imf.org) — https://www.imf.org/en/News/Articles/2026/10/01/pr26xx-imf-warns-of-ai-investment-risks-amidst-market-volatility
56. Sinking AI stocks undercut markets worldwide as oil climbs to its highest price since May (wsls.com) — https://wsls.com/
57. CoreWeave and IREN stock fall to 2026 lows as Nebius drops 7% (openingbelldailynews.com) — https://openingbelldailynews.com/