AI spending doubts weigh on global equities
SPY•Global equities fell for a second week as investors questioned returns on debt-funded AI spending; the MSCI ACWI lost 0.9%, and Meta shares dropped 9% after its 2026 capital spending forecast reached $135 billion to $145 billion.
1. Markets and credit concerns
Global equities fell for a second week as investors questioned whether debt-funded AI spending can generate adequate returns. The MSCI ACWI lost 0.9%, while Meta shares dropped 9% after its 2026 capital spending forecast reached $135 billion to $145 billion. French 10-year OAT-Bund spreads widened 30 basis points to 167 basis points, the widest since the eurozone sovereign crisis, and hyperscaler credit-default-swap spreads widened 20 to 35 basis points. AT1 exposure was replaced with high yield to preserve carry while reducing exposure to French sovereign stress.
