World stocks slip as AI spending worries hit chipmakers
SMH•World stocks edged lower as concerns about AI spending and chipmaker competition weighed on shares, while investors awaited more U.S. earnings. The S&P 500 fell 0.10%, the Nasdaq dropped 0.26%, and Brent crude eased 0.9% to $105.69 a barrel.
1. Stocks edge lower
World stocks slipped as concerns over AI spending weighed on chipmakers and investors looked to upcoming U.S. corporate earnings for clues on whether large technology companies can justify heavy capital expenditure. The Dow fell 0.31%, the S&P 500 declined 0.10% and the Nasdaq lost 0.26%; chip stocks were down more than 1%.
2. Competition and earnings
Reported progress by Chinese memory-chip maker CXMT added to concerns about competition from Chinese AI companies. JPMorgan Chase rose 0.14% after reporting higher third-quarter profit, Wells Fargo fell 2.1%, and Goldman Sachs gained 0.54%; Alphabet, Amazon, Meta Platforms and Nvidia had yet to report results.
3. Yields and oil ease
The 10-year Treasury yield fell 2.29 basis points to 5.22%. Traders were awaiting U.S. inflation data due Wednesday, while Brent crude futures dipped 0.9% to $105.69 a barrel as traders assessed supply risks and the prospect of additional Russian diesel supplies.
