Stocks meander as AI spending worries and elevated yields weigh
SPY•Asian stocks were poised for a second straight weekly drop as investors weighed AI funding needs, elevated yields and higher energy prices. Brent crude dipped 1.2% to $103.05 a barrel, while OpenAI’s annualized September revenue was reportedly almost $50 billion and could reportedly reach or exceed $70 billion by year-end.
1. Markets weigh AI costs
Asian stocks were poised for a second straight weekly drop as investors fretted about higher energy prices, bond market volatility and the sums needed to fund AI investment. The Asia-Pacific index excluding Japan was set to fall nearly 1% for the week, though it rose 0.5% on Friday; Japan’s Nikkei dipped 0.25%, and Nasdaq futures rose 0.5%.
2. OpenAI revenue estimates
OpenAI reportedly told investors its annualized September revenue was almost $50 billion, lower than an earlier indication. The company could reportedly reach or exceed $70 billion by year-end.
3. Yields and oil in focus
Brent crude futures dipped 1.2% to $103.05 a barrel after rising more than 4% in the previous session amid concerns over the Middle East war. Investors also weighed planned fundraising by SpaceX, Broadcom and Oracle to buy high-end AI chips, while long-term yields remained near multi-decade highs. France’s debt load, budget deficit and political outlook remained in focus.
