US Tech Stocks Fall Over 2 % as AI Debt Fears Grow | Global Economy , Oct 17

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• AI stocks plunge. Inflation heats up. Where we're still finding opportunities

  AI stocks sold off sharply last week as the Nasdaq fell 4.5%, snapping a four-week winning streak and posting its worst week since June, while the S&P 500 dropped 2% and the Dow gained 0.7% as investors rotated into healthcare and consumer staples. Hotter-than-expected inflation data raised concerns that the Federal Reserve could keep rates high, with September consumer prices up 3.7% year over year versus 3.6% expected and producer prices up 6.3% annually. Memory chip stocks such as Micron and Sandisk fell after China’s CXMT reported progress on a more efficient chip structure, while CoreWeave dropped 25% as its debt rose above $51 billion and its bond yields and credit default swaps climbed. Palo Alto Networks and CrowdStrike lost more than 18% and 17% after reports that OpenAI was in early talks to buy Trail of Bits. Meta and Microsoft were bright spots, with Microsoft closing at a record high for the first time in nearly a year, and the author stresses the importance of diversification.

  CNBC·17/10, 15:42▼ NVDA▼ QQQ▼ GOOGL▼ METAinflationFedAI investment
• Wall Street tumbles as worries about AI trade and high oil prices weigh

  The Nasdaq was on track for a weekly loss of over 4%, with CoreWeave down 12% on the day and about 25% over five sessions, and Broadcom down 3.6%. Concerns center on debt-heavy AI infrastructure firms that may not turn profits in time to repay borrowings, especially as borrowing costs are expected to rise. Oil jumped more than 3% on Middle East supply worries, while the S&P 500 fell 1.22% to 7,649.71 points, set for its steepest weekly loss since January, and the Nasdaq dropped 2.19% to 26,128.13 points. Hotter-than-expected inflation reports have reinforced expectations that the Fed will hold rates this month, while Barclays expects 25-basis-point hikes in December and January.

  lufkindailynews.com·17/10, 00:30▼ NVDA▼ QQQ▼ SPY▼ AAPLWall StreetAI investmentoil prices
• AI Investment boom raises cross - asset risks as capex cycle matures , says BCA research strategist

  BCA Research's Peter Berezin sees AI as transformative but warns of a major market correction if productivity gains lag investment, with the core risk being financial and timing-related. The five largest hyperscalers are expected to spend over $1 trillion next year, while the industry may need about $10 trillion in annual revenue to justify the outlay. He says the equity bull market is mature rather than over, with a possible Nasdaq drawdown of around 50% in 2028, a bigger risk than 2027. He doubts China can offset a US slowdown and is neutral on equities and bonds near term, but expects to become more constructive on US duration, as real yields near 3% already offer attractive carry. He favors industrial metals over oil long term and remains bullish on gold.

  mexicostar.com·18/10, 06:45• NVDAAI investmentgoldinterest rates
• AI investment boom raises cross-asset risks as capex cycle matures, says BCA research strategist

  Peter Berezin, Chief Global Macro Strategist at BCA Research, argues AI remains transformative but the main risk is financial and about timing, as returns may arrive too slowly to justify current capital spending. The five largest hyperscalers are expected to spend over $1 trillion next year, while the industry may need roughly $10 trillion in annual revenue to monetise the investment, based on his assumptions. He warns that chipmakers booking sales upfront while hyperscalers capitalise and depreciate their spending could obscure mounting pressure on returns. Berezin sees the equity bull market as mature rather than over, expecting consolidation before a bigger risk in 2028, when the Nasdaq could fall around 50%, while a 2027 US recession looks unlikely. He doubts China can offset a US slowdown, stays neutral on equities and bonds near term, and remains structurally bullish on gold.

  singaporestar.com·18/10, 04:45• NVDAAI investmentNasdaqgold
• Gartner analyst behind tech rout: AI returns are not yet large enough to justify neocloud build-out

  Gartner stands by its forecast that $3.5 trillion in AI investment could be at risk because top AI models may not generate enough profit. Chief forecaster John Lovelock told CNBC that returns do not yet match the scale of spending, and that neoclouds may face takeovers and mergers rather than mass shutdowns, after Gartner predicted 80% of them could stop operating as independent companies. Neoclouds were hit hard last week and helped drag the broader market lower, with CoreWeave down 25%, Nebius down 25% and IREN down 16%, while the S&P 500 fell 2% and the Nasdaq Composite fell 4% for the week ending Oct. 16. Anthropic's revenue growth reportedly slowed from 140% in the second quarter to 45% in the third, and its $16.8 billion quarterly revenue looks small against the more than $5 trillion hyperscalers are expected to spend through 2030.

  CNBC·19/10, 16:57▼ NVDA▼ QQQ▼ AMZN▼ GOOGLAI investmentcloud computingCoreWeave
• AI Financing Concerns and Major Technology Earnings Set Agenda for Markets This Week

  The Philadelphia Semiconductor Index fell 11.41% last week and the Nasdaq Composite dropped 4.48%, as investors weighed debt-funded AI infrastructure spending amid expectations that rates could stay high for longer after September inflation exceeded forecasts. CoreWeave (CRWV) lost about a quarter of its market value during the week, Oracle shares fell 9.31%, and the cost of default protection on debt issued by AI-related companies rose. Meta (META) and Tesla (TSLA) report after the US close on Wednesday, SpaceX (SPCX) on Tuesday, and Netflix (NFLX) is also on the calendar, with investors focusing on investment spending and business performance. SpaceX recently agreed to acquire cellular spectrum licences from Grain Management for about $8 billion in cash.

  Yahoo Finance·19/10, 10:32• META▼ NVDA▼ QQQ• SPYAI investmentNasdaqearnings

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• Meta Earnings: What To Look For From META

  Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.

  Yahoo Finance·20/10, 07:17• METAMETAearningstech stocks
• An AI bust could come from places investors arent watching , an economist says

  Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.

  aol.com·20/10, 07:15▼ NVDA▼ QQQAI investmentartificial intelligenceNVDA
• Yen jumps after JGB auction draws big demand , euro finds relief

  The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.

  aol.com·20/10, 07:15▼ USD/JPY▼ DXY▲ EUR/USDbondsexchange ratesJapan
• Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low

  Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.

  dailymail.com·20/10, 07:15• GBP/USD
• CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet

  U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.

  CNBC·20/10, 07:14▲ QQQ▲ SPY▲ NVDA• VNINDEXtech stocksAsiaNVDA
• NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook

  NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.

  Yahoo Finance·20/10, 07:10NIdividendselectricity