GLOBAL MARKETS — World stocks dip on AI spending concerns; Brent settles lower
(Updates headline and prices throughout with US market close) Chipmaker stocks drop across the globe on competition concerns JPMorgan, Wells Fargo, Goldman Sachs report Q3 results US Treasury yields dip as investors seek safety By Sruthi Shankar and Chibuike Oguh NEW YORK, Oct 13 (Reuters) — World stocks edged lower on Tuesday as concerns about AI spending weighed on chipmakers and investors looked ahead to more US corporate earnings for clues on whether big technology firms can justify their heavy capital spending. Brent crude futures also fell as traders assessed developments in the Middle East conflict. Investors have ridden the AI wave in the past four years as massive spending powered corporate profits and economic growth, but more recently, worries over concentration risks and whether a payoff will come soon enough have weighed. On Wall Street, all three indexes finished lower with industrials, healthcare, and financials driving losses. Chip stocks lost more than 2%. The Dow Jones Industrial Average fell 0.35%, the S&P 500 fell 0.02% and the Nasdaq Composite fell 0.15%. The pan-European STOXX 600 index fell 0.1%. MSCI's main world stocks index dipped 0.23%. "The AI trade has
(Updates headline and prices throughout with US market close) Chipmaker stocks drop across the globe on competition concerns JPMorgan, Wells Fargo, Goldman Sachs report Q3 results US Treasury yields dip as investors seek safety By Sruthi Shankar and Chibuike Oguh NEW YORK, Oct 13 (Reuters) — World stocks edged lower on Tuesday as concerns about AI spending weighed on chipmakers and investors looked ahead to more US corporate earnings for clues on whether big technology firms can justify their heavy capital spending. Brent crude futures also fell as traders assessed developments in the Middle East conflict.
Investors have ridden the AI wave in the past four years as massive spending powered corporate profits and economic growth, but more recently, worries over concentration risks and whether a payoff will come soon enough have weighed. On Wall Street, all three indexes finished lower with industrials, healthcare, and financials driving losses. Chip stocks lost more than 2%. 15%.
1%. 23%. "The AI trade has been driving the market for the first part of the year up until the third quarter and usually the Nvidias and AMDs trade down ahead of the hyperscalers' earnings announcements because of the uncertainty with regards to the capital spending cycle," said Gerry Sparrow, president and portfolio manager at Sparrow Capital Management. " Earnings Kick-off Investors are turning their eyes to the US quarterly earnings season, which kicked off with results from big banks.
86% after it reported a profit increase in the third quarter, driven by investment banking and trading performances. 23% after their results. com, Meta Platforms and Nvidia are yet to report their quarterly earnings. "Until we get clarity on hyperscaler capital spending and revenue on the AI trade, you're going to see some very mixed results on the benchmarks: Dow, S&P 500 and the Nasdaq," Sparrow said.
364% it hit last week. A toxic mix of inflationary pressure from elevated energy prices and worries about ballooning government debt has triggered several bond selloffs in recent weeks, pushing borrowing costs to multi-decade highs across the globe. Traders are awaiting US inflation data on Wednesday for clues on the Federal Reserve's policy path. 6% chance that it holds rates steady later this month, up from 51% a month earlier, the CME FedWatch tool showed.
Oil prices eased as traders assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia. 69 per barrel. The dollar slipped from 18-month highs, along with a drop in yields and oil prices. 31 per dollar.
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