AI spending concerns weigh on global equities, UBP says
QQQ•UBP said concerns about returns on AI investment are driving the technology sell-off rather than worsening earnings prospects. The Nasdaq fell 2% last week, while S&P 500 third-quarter earnings growth reached 30.2% with 60% of companies reporting.
1. AI investment concerns
UBP said worries about returns on AI investment are driving the technology sell-off rather than deteriorating earnings prospects. The Nasdaq fell 2% last week, putting it 10% below its early-October peak and in correction territory.
2. Earnings and credit
S&P 500 third-quarter earnings growth reached 30.2%, with 60% of companies reporting. Hyperscalers and data center developers issued more than $313 billion of investment-grade bonds this year, almost triple the 2025 total, while AI-related investment-grade credit spreads widened 14 basis points since July to 100 basis points.
