Shard Capital warns AI spending boom risks becoming earnings headwind
QQQ•Shard Capital warned in its October 2026 review that rising financing needs could make AI capital spending an earnings headwind. Capital expenditure by the five largest AI spenders is expected to reach $803 billion to $828 billion.
1. Market performance
Global equities fell 1.58% in dollar terms, while the Nasdaq dropped 5.28% as investors questioned technology valuations. Value stocks gained 2.63%, compared with a 3.5% decline for growth stocks. US Treasuries returned 2.36% as investors sought safety, while AI-exposed corporate bond issuers faced increasing spread pressure.
