World stocks dip on AI spending concerns; Brent settles lower
SPY•World stocks edged lower as concerns about AI spending weighed on chipmakers, while Brent crude fell 0.9% to $105.69 a barrel. The S&P 500 fell 0.02%, the Dow lost 0.35% and the Nasdaq declined 0.15%.
1. Stocks edge lower
World stocks edged lower as investors weighed concerns about AI spending and looked ahead to more U.S. corporate earnings. The Dow fell 0.35%, the S&P 500 lost 0.02% and the Nasdaq declined 0.15%; chip stocks fell more than 2%. Broadcom CEO Hock Tan likened some flows into the AI sector to “casino gambling.”
2. Banks report results
The U.S. quarterly earnings season began with results from major banks. JPMorgan Chase shares fell 0.86% after the bank reported higher third-quarter profit, while Wells Fargo fell 3.1% and Goldman Sachs declined 0.23% after their results. Alphabet, Amazon.com, Meta Platforms and Nvidia had yet to report.
3. Yields and oil ease
The 10-year Treasury yield fell 2.72 basis points to 5.22%. Brent crude futures declined 0.9% to $105.69 a barrel as traders assessed supply risks from attacks on Saudi Arabia and the prospect of additional diesel supplies from Russia.
