Global stocks flat as AI and rate fears hit tech
SPY•Global stocks ended nearly flat as concerns about AI spending and higher interest rates weighed on technology and chip shares. The global equities gauge fell 0.06%, while the Dow rose 1.08%, the S&P 500 gained 0.33% and the Nasdaq added 0.08%.
1. Mixed market close
Global stocks ended nearly flat on Thursday as investors weighed concerns about AI spending and higher interest rates. The Philadelphia Semiconductor index fell nearly 1%, while the Dow gained 1.08%, the S&P 500 rose 0.33% and the Nasdaq advanced 0.08%, with healthcare and materials stocks leading the latter two indexes higher.
2. Asia shares slide
South Korea’s KOSPI plunged almost 8% and Japan’s Nikkei 225 fell nearly 5% in a tech-led selloff. MSCI’s Asia-Pacific shares outside Japan index dropped 3.12%, its biggest one-day decline since late July. Investors questioned the sustainability of data-center demand and AI infrastructure spending as higher funding costs raised project hurdles.
3. Yields and currencies
The US 10-year Treasury yield fell 12.58 basis points to 5.064%, its largest daily drop in more than a year. Futures showed a 73% probability that the Federal Reserve would hold rates at its October 28 meeting. The dollar retreated from an 18-month high, while Brent crude settled down 0.13% at $105.92 a barrel and spot gold rose 1.57% to $4,169.48 an ounce.
