Investors Flock to Bonds, US Stocks Drop: Market Update

US stocks, particularly in the technology sector, are experiencing a slide as investors take profits amid fears of rising inflation and the possibility of central banks increasing interest rates. The second-quarter stock rally, fueled by growth-oriented artificial intelligence stocks, is fraying under the threat of more rate hikes and fears that the full economic impact of aggressive central bank policy has yet to be felt. Bond yields fell, and global bonds rallied as investors sought safety after economic data from Germany and France ignited fears of a recession.