A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on April 7, 2025.

Timothy A. Clary | Afp | Getty Images

Investors ran for cover this week as fears surrounding artificial intelligence spending and higher oil prices both hit stocks, driving the yield on the 10-year U.S. Treasury note below 5%.

The benchmark yield remained just under 5% on Friday, after falling beneath that level Thursday for the first time in a month, as investors continued to express misgivings over the massive debt tech companies are taking on to finance their build-out of AI networks.

The magnitude of Thursday's drop in 10-year yields clouds the near-term outlook, leaving bond investors "dazed and confused," said Chris Rupkey, chief economist at Fwdbonds.…