World stocks slip as AI spending worries hit chipmakers
SPY•World stocks fell as concerns about AI spending weighed on chipmakers, with the S&P 500 down 0.25% and the Nasdaq down 0.39%. The 10-year Treasury yield dipped to 5.223%, while Brent crude fell 0.52% to $106.10 a barrel.
1. Stocks edge lower
World stocks edged lower as investors questioned whether large technology companies can justify heavy AI-related capital spending. US chip stocks fell more than 2%, while the Dow lost 0.20%, the S&P 500 0.25% and the Nasdaq 0.39%.
2. Banks report results
JPMorgan Chase rose 0.6% after reporting a third-quarter profit increase driven by investment banking and trading. Wells Fargo fell 1.3%, while Goldman Sachs gained 0.6%. Alphabet, Amazon, Meta Platforms and Nvidia had yet to report quarterly results.
3. Yields and oil ease
The 10-year Treasury yield fell 2.08 basis points to 5.223%. Traders were awaiting US inflation data due Wednesday; markets priced an 80.6% chance that the Federal Reserve would hold rates steady later in the month. Brent crude fell 0.52% to $106.10 a barrel as traders weighed supply risks and the prospect of additional Russian diesel supplies.
