Markets Overview

  • ASX SPI 200 futures little changed at 8,509.00
  • S&P 500 down 0.2% to 6,656.45
  • Dow Average down 0.6% to 46,289.46
  • Aussie up 0.4% to 0.6517 per US$
  • US 10-year yield fell 1.9bps to 4.1192%
  • Australia 3-year bond yield fell 3.9 bps to 3.74%
  • Australia 10-year bond yield fell 3.6 bps to 4.44%
  • Gold spot up 0.9% to $4,081.73
  • Brent futures up 1.2% to $64.97/bbl

Economic Events

  • 10:30: (AU) Oct. Westpac Leading Index MoM, prior -0.03%
  • 11:00: (AU) Australia to Sell A$1 Billion 2.75% 2035 Bonds
  • 11:30: (AU) 3Q Wage Price Index QoQ, est. 0.8%, prior 0.8%
  • 11:30: (AU) 3Q Wage Price Index YoY, est. 3.4%, prior 3.4%

A selloff in the world’s largest technology companies drove stocks to their longest slide since August, underscoring the American market’s narrow reliance on a handful of growth giants.

The S&P 500 lost almost 1%, falling for a fourth straight day. In the run-up to Nvidia Corp.’s results, the shares sank 2.8%. The bar is getting higher for the chipmaker to convince investors that the billions of dollars spent on artificial intelligence will pay off. Its outlook could have significant implications due to the firm’s massive influence on major indexes.

Wall Street has grown increasingly concerned that AI isn’t yet generating enough revenue or profits to justify the massive spending on infrastructure. Microsoft Corp. and Nvidia are committing to invest up to a combined $15 billion in Anthropic PBC, in a move that ties the AI developer closer to two of the biggest backers for its rival OpenAI.

“The question isn’t really whether we’re in a bubble,” said Sonu Varghese at Carson Group. “The real question is how long the current trend in AI spending will last and how bad the fallout will be when it ends.”

Valuations in the booming industry are due for a reassessment, according to JPMorgan Chase & Co. Vice Chairman Daniel Pinto.

The S&P 500 dropped to around 6,617, the lowest in more than a month. A gauge of tech megacaps slid 1.8%. A closely watched index of stock volatility — the VIX — hovered near 25.

Bitcoin climbed after briefly dropping below $90,000. The yield on 10-year Treasuries slid two basis points to 4.12%. The dollar wavered.