Stocks dip on AI jitters as big banks kick off US earnings season
SPY•World stocks slipped 0.13% as concerns about competition in AI chipmaking weighed on technology shares, while JPMorgan, Wells Fargo and Goldman Sachs reported third-quarter results. US Treasury yields eased, and Brent crude fell 1.8% to $104.76 a barrel.
1. AI concerns weigh on stocks
The MSCI world stock index dipped 0.13% as concerns about competition from Chinese AI players hit chipmakers. Nasdaq futures fell 0.7%; Micron Technology dropped 3.8% in premarket trading and Nvidia fell 0.8%. South Korea’s KOSPI sank more than 5%, while the STOXX 600 rose 0.4%.
2. Treasuries and oil
The 10-year Treasury yield eased to 5.187%, retreating from last week’s 24-year high of 5.364%. Investors awaited US inflation data due Wednesday; traders priced in an 80.6% chance that the Federal Reserve would hold rates steady later in the month. Brent crude fell 1.8% to $104.76 a barrel.
3. Banks report results
JPMorgan Chase rose 1% in early trading after reporting higher third-quarter profit, driven by investment banking and trading. Wells Fargo fell 0.8%, while Goldman Sachs gained 3% after their results.
