* 10-year yield on pace for biggest drop in more than 3-1/2 years
NEW YORK, Oct 22 (Reuters) - US Treasury yields tumbled on Thursday as equities sold off after concerns about the sustainability of the AI outlook reignited, boosting the safe-haven appeal of government debt.
The Nasdaq slumped more than 2% as Meta shares lost nearly 8% following the company's quarterly earnings report and announcement of new non-voting shares to help fund the social media company's AI expansion.
Yields have dropped in recent days, as concerns about a slowdown in AI spending and its impact on economic growth have overshadowed economic data, which showed persistent inflation pressures.
Investors had already priced in inflation and the prospect of Federal Reserve rate increases, but changes in risk assets and financial conditions are now fueling the bid for Treasuries, said Thomas Urano, co-chief investment officer at Sage Advisory in Austin, Texas.