Market Summary
Technology Stocks Fall as Earnings Fail to Sustain AI Optimism: Stocks declined as major earnings announcements failed to sustain confidence in the AI trade. Tesla shares fell 3.3% after the company cut its capital-spending forecast, while Meta gained 2.2% after increasing its spending commitments and announcing plans for a new non-voting share class. South Korea’s KOSPI, viewed as a barometer of confidence in AI development, surrendered earlier gains and was on course for its lowest close since April.
Safe-Haven Demand Supports the Yen and Treasuries: The yen and US Treasuries gained as investors moved towards safe-haven assets, with the 10-year Treasury yield trading below 5.09%. Equity markets remained under pressure, with Nasdaq 100 futures falling 1.6% and the MSCI Asia Pacific Index declining 2%.
Oil Rises Following Attacks on Saudi Infrastructure: Brent crude rose following deadly attacks on Saudi Arabian oil infrastructure, including drone strikes on a Saudi Aramco oil field. The risk of further escalation in the Middle East continues to support energy prices, even as flows through the Strait of Hormuz approach pre-war levels. The New York Times also reported that US officials have prepared plans for renewed strikes on Iran following the midterm elections.
Key Market Moves Today
- S&P 500 Futures: -0.88% (7,732)
- Crude Oil: +2.24% ($99.34)
- Spot Gold: -1.14% ($4,094)
- Nasdaq 100 Futures: -1.60%
- Japanese Yen: +0.50%
- Swiss Franc: +0.40%
- MSCI Emerging Markets Index: -2.30%
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