Shares stumble, oil rises as investors await AI sector earnings
SPY•Asian stocks fell broadly on Tuesday, with South Korea’s KOSPI down 3.92%, while U.S. crude rose 0.18% to $103.85 a barrel. Investors awaited corporate earnings, including results from Meta and Tesla later in the week, and weighed geopolitical risks and a U.S. order waiving some Russia-related energy restrictions.
1. Stocks retreat, oil climbs
The MSCI Asia ex-Japan index fell 1.14%, Japan’s Nikkei 225 dropped 0.98% and South Korea’s KOSPI tumbled 3.92%. European and U.S. stock futures were mixed in early trading. U.S. crude rose 0.18% to $103.85 a barrel, while Brent gained 0.08% to $109.64.
2. Earnings and AI spending
Investors were looking for evidence that consumers and the broader economy remain resilient as companies report quarterly results. Meta and Tesla were scheduled to report later in the week. Goldman Sachs expects five AI hyperscalers, including Meta, to increase combined capital expenditure to about $1.2 trillion next year.
3. Geopolitical risks in focus
Markets weighed an executive order waiving some U.S. sanctions and tariffs related to Russian energy, though President Donald Trump said he had not made a final decision. Oil prices also rose as investors assessed geopolitical risks, including unrest in France and an attack in Yemen.
