Yields Drop Below 4% as AI Fears Trigger Flight to Quality
Feb 28th 2026
Bond yields and mortgage rates eased as investors sought safety amid AI-driven job fears; Nvidia beat estimates and raised guidance while January wholesale inflation showed mixed signals.
- 10-year Treasury yield fell below 4 percent and mortgage rates dipped under 6 percent, the lowest since 2022.
- Investors shifted into safer assets as concerns about AI-related job losses weighed on stocks.
- Nvidia posted a 3 percent revenue surprise and a 5.2 percent earnings surprise and raised guidance above analyst expectations.
- Nvidia CEO Jensen Huang said computing demand is growing exponentially and that an agentic AI inflection point has arrived.
- Profit taking and heavy covered-call option activity affected Nvidia stock after the earnings report.
- January producer price index rose 0.5 percent versus a 0.3 percent forecast while core PPI was up 0.3 percent, with services rising and goods falling.
- FedEx sued for tariff refunds in the U.S. Court of International Trade, about 1,800 companies have filed similar claims, and the Supreme Court has not ruled on repayment of collected tariff revenue.