Global markets slip as AI jitters and US midterms keep investors on edge
SPY•Global stocks fell as AI concerns and US midterm voting kept investors cautious. The STOXX 600 dropped 0.6%, South Korea’s KOSPI and Taiwan’s index each fell 3.6%, and Apple’s weaker holiday-quarter outlook added to tech earnings gloom.
1. Stocks under pressure
A fresh bout of AI anxiety pressured global stocks as voting began in the US midterm elections. Polymarket traders saw about a 77% chance of Democrats winning both chambers of Congress, an outcome that could lead to tougher AI oversight and more corporate regulation. Nasdaq-100 futures were broadly flat, while S&P 500 futures fell 0.14%; the STOXX 600 was down 0.6%.
2. Yields and earnings
South Korea’s KOSPI and Taiwan’s index each dropped 3.6%. The dollar index dipped to 101.69, while the US 10-year Treasury yield rose 1.2 basis points to 4.9064%. Apple forecast lower gross margins for the holiday quarter, citing rising memory-chip costs, and projected services revenue growth below Wall Street expectations.
3. Oil and currencies
Brent crude rose 1.6% to $106.44 a barrel as conflicting signals on the US-Iran war kept oil volatile. The Chinese yuan weakened after the People’s Bank of China said it would raise the foreign exchange reserve ratio.
