Bond Rally Stalls Despite Tech Selloff -- WSJ

By Sam Goldfarb

There's something different about today's tech selloff: U.S. Treasurys have rallied a bit in a flight-to-safety trade, but not nearly as much as other days in recent weeks when tech stocks also dropped sharply.

Treasury yields, which fall when bond prices rise, dropped immediately after Intel and Amazon.com reported disappointing earnings late Thursday. But they are up significantly from their overnight lows.

The 10-year yield was recently 4.954%, according to Tradeweb, down about 0.02 percentage point from 4.978% just before those earnings reports but up from 4.894% early in the overnight session. By comparison, the yield dropped nearly 0.20 percentage point on Oct. 22, when tech stocks also slid.

The muted rally in bonds could be a sign that yields have found a floor for now, in what could be read as both good and bad news for investors.

-- The good: one reason why yields aren't falling further is that recent data continues to show solid economic growth. With the Federal Reserve still seen as much more likely to raise rates than cut them in the coming months, investors are hesitant to make a larger bet on bonds.

-- The bad: If yields really have found a floor, investors won't be able to use bonds as a hedge against losses in stocks like they did earlier this month. Stubbornly high yields would also keep pressure on stock valuations and keep stoking concerns about the impact of steeper borrowing costs for businesses.

Economic growth is also not the only reason why yields have leveled off. Investors are also worried about inflation, especially given signs that the U.S. could resume attacks on Iran after the Nov. 3 midterm elections, potentially driving up energy prices.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 30, 2026 12:13 ET (16:13 GMT)