AI Stocks Slide on Earnings, French Bonds Sell Off, Oil Tops $112

what happened

Artificial-intelligence stocks dropped across global markets, and investors moved into US Treasurys. Nasdaq futures fell 1.55% after a series of AI company earnings disappointed investors and ended Wednesday's relief rally. Meta Platforms slipped 3% in premarket trading despite strong revenue growth, while Lam Research and IBM dropped 8.4% and 6.5%. According to Update, European and Asian AI stocks also declined, and South Korea's Kospi, dominated by memory chipmakers, closed down 3.5%.

Brent crude climbed 2.9% to hover near $112 a barrel, while December WTI approached $100. The move followed reports that Saudi Arabia's energy ministry intercepted a drone aimed at a facility at Saudi Aramco's Shaybah oil field. French government bonds sold off as the spread over German bunds widened to 164 basis points, the highest since 2011, and the 10-year OAT yield rose to 5.077%, a level not seen since 2002.

why it matters

Higher oil, a selloff in French debt and a retreat from risk assets add pressure on European indexes, which already fell sharply. Lower US Treasury yields and a weaker dollar point to a search for safe havens. Gold fell 1.5% below $4,100 an ounce, and bitcoin dropped below $82,000. Investors will watch Western Digital's earnings after the close today.

market impact

European stocks and OATs: higher oil and sovereign debt costs add pressure; AI stocks: earnings disappointment weighs on indexes

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