Oil prices rose 2% after attacks on a Saudi airport, while global stocks were mixed and the dollar reached its highest level since April 2025. The article also highlights growing AI concerns and says US demand for AI infrastructure widened the trade deficit to 3% of GDP in the second quarter.
Oil and US diesel prices rose Monday after weekend attacks on a Saudi airport heightened security and supply concerns. Crude oil gained 2%; South Korean shares fell 4%, European shares rose 0.7%, and Wall Street was mixed, with the Nasdaq down 0.4%, the Dow up 0.4% and the S&P 500 nearly flat. The US bond market was closed for Columbus Day.
The dollar index reached its highest level since April 2025 and has risen 4% over the past month. The article says euro sovereign debt worries contributed to the move, while speculative long-dollar positions are extended.
The article says AI-related spending has supported US corporate profits and equities, but rising imports of chips, computer equipment and other machinery have widened the US trade deficit. It reached 3% of GDP in the second quarter, up from 2.7% in the first quarter, and could reach 4% next year, economists said.
