A record $8 trillion in cash is now also on the sidelines in U.S. money-market funds, according to the Investment Company Institute.
Traders flock to Treasury market for safety as tech-led stock selloff deepens
In short
The deepening equity decline, primarily led by heavily weighted technology stocks, is prompting investors to reduce their overall portfolio risk exposure. In response, capital is moving heavily toward the relative stability of the Treasury market. This persistent flight to safety emphasizes growing unease over asset valuations amid the sustained market pullback.
Key points
- Rising volatility in equities is accelerating capital reallocations toward safe-haven gov…: Rising volatility in equities is accelerating capital reallocations toward safe-haven government paper.
- Persistent technology sector weakness continues to exert downward pressure on the broader…: Persistent technology sector weakness continues to exert downward pressure on the broader stock market.
- Treasury instruments remain the primary destination for market participants seeking immed…: Treasury instruments remain the primary destination for market participants seeking immediate portfolio safety.