Inflation anxiety drags on AI stocks as markets point to a mixed open

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• UBS says neocloud sell - off does not derail AI boom , favours hyperscalers and chipmakersinvestinglive.com·19/10, 23:00▲ NVDA▲ AMZN▲ GOOGL▲ METAartificial intelligenceAI investmentsemiconductors
• AI CapEx And Earnings : What Happens When Growth Slows

  Lance Roberts argues that AI capex and earnings are now so tightly linked that profits can suffer once spending stops accelerating, even if it does not fall. Goldman Sachs estimates that almost half of the S&P 500's earnings growth this year traces to AI-related spending on chips, servers, power gear and concrete. Hyperscaler capex is projected at $800 billion in 2026, $1.2 trillion in 2027 and $1.4 trillion in 2028, but year-over-year growth slows from 94% to 50% to 17%. Using Goldman's sensitivity, the author estimates that flat 2027 capex at $800 billion would imply S&P 500 earnings growth of only about 1.4%, versus 11% in Goldman's base case. He argues the key risk lies in the shrinking annual dollar increase in spending, which Goldman's path cuts in half in 2028.

  zerohedge.com·19/10, 22:45▼ NVDA▼ QQQ▼ GOOGL▼ METAAI investmentartificial intelligenceearnings
• Alphabet Stock Slipped After Q2 Earnings. Here's What Investors Need to See in Q3.

  Alphabet shares fell about 6% after its second-quarter report, despite revenue rising 24% to $119.8 billion and Google Cloud revenue jumping 82% to $24.8 billion. Investors are growing impatient with heavy AI spending and want evidence of returns, especially after Alphabet raised its full-year capex forecast by $15 billion to a range of $195 billion to $205 billion. Quarterly capex reached $44.9 billion, pushing free cash flow to negative $5.9 billion. The author says the third-quarter report on October 28 is an opportunity to prove the investments pay off, with two areas to watch: Google Cloud's growth and the custom TPU chip business, which began recognising direct chip sales revenue in the second quarter but does not report it separately.

  Yahoo Finance·19/10, 22:43▼ GOOGLGOOGLearningscloud computing
• Trading Day : AI storm abates933thedrive.com·19/10, 22:15▲ NVDA▲ QQQ▲ SPY▲ AAPLartificial intelligenceWall StreetNVDA
• Tech Stocks Power S & P 500 and NASDAQ Higher

  Global markets diverged on Monday: a technology-led rally lifted Wall Street, while Europe declined broadly and Asia-Pacific markets were mixed. The NASDAQ Composite jumped 290.85 points (1.11 percent) to 26,430.89, and the S&P 500 rose 31.29 points (0.41 percent) to 7,690.73. The Dow Jones Industrial Average slipped 36.38 points (0.07 percent) to 51,966.03. In Europe, the FTSE 100 fell 1.08 percent and the DAX dropped 1.18 percent, while in Asia the HANG SENG gained 0.52 percent, the Nikkei 225 fell 0.62 percent and the KOSPI jumped 1.76 percent.

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• FinFET Technology - Global Strategic Business Report Just Released: AI and Data Centers Push FinFET Chip Market Toward $97 Billion

  According to Research and Markets, the global FinFET technology market was valued at $38.5 billion in 2024 and is projected to reach $97.1 billion by 2030, growing at a compound annual growth rate of 16.7%. Demand for high-performance, energy-efficient chips across consumer electronics, data centers, automotive, AI and IoT is driving growth. The CPU segment is forecast to reach $36.6 billion by 2030, while China is the fastest-growing market, with an 18% CAGR and $20.8 billion by 2030. The report also assesses the impact of tariffs on semiconductor supply chains and profiles companies including TSMC, Samsung, Intel and NVIDIA.

  Yahoo Finance·20/10, 08:35semiconductorsartificial intelligencedata centers
• The sorrow of Europe's “big brother” economy: Bonds keep selling off heavily after a “turbulent weekend”

  French 10-year government bond yields rose 0.14 percentage points to 4.93% after a turbulent weekend, while the spread over German bonds returned to 1.47 percentage points. Nationwide protests over rising living costs and student education conditions turned into widespread rioting and looting; the government said at least 3,000 shops and businesses were looted, and the French retail federation estimated damages could reach “several hundred million euros.” More than 2,500 people are under formal investigation, 67 of them detained, and several cities have imposed curfews. President Macron rejected Interior Minister Laurent Nuñez’s resignation offer, even though Nuñez admitted police were deployed too thinly for protests of over 550,000 people, against an expected 200,000. Opposition politicians and the mayors of Paris and Marseille criticized the government for letting police lose control of the situation.

  CafeF·20/10, 08:31▼ EUR/USD▲ DXY▲ XAU/USDbondsFranceprotests
• President Donald Trump Claims, "We Don't Have Inflation, and Tariffs Don't Cause Inflation," but a New Report Strongly Disagrees

  Although the stock market has posted strong returns under President Trump, the article argues his inflation-driving policies may be the biggest threat to the AI-driven bull market. A New York Federal Reserve report by three economists finds that by February 2026, tariffs had added 2.9 percentage points to goods price inflation, and each percentage point increase in average tariffs lifted consumer prices by about a quarter of a point after one year. Beyond tariffs, the Iran war and the ongoing closure of the Strait of Hormuz have pushed fuel prices sharply higher, with fuel oil up 74.0% and gasoline up 34.2% over the past year, while overall CPI rose 3.7%. The article warns that persistent inflation could prompt the Fed to raise rates more aggressively, slowing AI infrastructure investment and sending stocks lower.

  Yahoo Finance·20/10, 08:26▲ DXY• SPY• XAU/USDinflationtariffsDonald Trump
• Bitcoin ETFs just saw their biggest day in a month thanks entirely to BlackRock

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  CoinDesk·20/10, 08:24▲ BTC/USDTbitcoinETFcapital flows
• A Big4 bank cut deposit rates in the morning, then raised them again in the afternoon

  VietinBank cut its deposit rates for terms of 6 months and longer on the morning of Oct. 20, then restored them to pre-adjustment levels by the afternoon. Its afternoon rate board showed 3.5% per year for 6 to under 12 months, 5.9% for 12 to under 24 months and 6% for 24 months and longer, versus 3%, 5.4% and 5.5% in the morning. Rates for terms under 6 months stayed unchanged, including 2.1% for 1 to under 3 months and 2.4% for 3 to under 6 months. The move came as banks followed the State Bank of Vietnam's guidance to cut deposit rates by at least 0.5 percentage points for terms of 6 months and longer, and Vietcombank and Agribank were among those reducing rates.

  CafeF·20/10, 08:22• BID• CTG• VCBinterest ratesbanksState Bank of Vietnam
• IVV vs. SPY: Which S&P 500 ETF Is the Better Buy for Long-Term Investors?

  The article compares two ETFs that track the S&P 500, iShares Core S&P 500 ETF (IVV) and State Street SPDR S&P 500 ETF (SPY), which have nearly identical holdings. The main difference is the expense ratio: IVV charges 0.03% a year, one-third of SPY's 0.09%, and its distribution yield is about 1.1% versus 1% for SPY. SPY's high liquidity remains valuable for active traders. The article concludes that IVV is the better choice for long-term investors, since lower costs can compound over time.

  Yahoo Finance·20/10, 08:20ETFS&P 500IVV