Asian shares slide on AI doubts as traders eye possible Fed hike

what happened

Asian share markets dropped on Monday as investors grew uneasy about how long the AI investment boom can last. Reuters reports that high oil prices are limiting the appeal of government bonds as a safe haven, while gold fell to a one-year low amid talk that stressed investors were selling to meet margin calls.

S&P 500 futures rose 0.4% and Nasdaq futures gained 0.6%, after the tech-heavy Nasdaq lost almost 7% in October. Futures put roughly a 72% chance on a quarter-point Fed rate hike in December. Ten-year Treasury yields edged up to 4.952%, but stayed well below their October peak of 5.3645%.

Brent crude slipped 1.5% to $111.72 a barrel after a third straight day of Iranian and Qatari talks aimed at ending the US-Israeli war on Iran. The euro was flat at $1.1156, while the dollar traded at 157.62 yen. Friday's payrolls report is expected to show 65,000 new jobs.

why it matters

For markets, the timing matters: doubts about AI capital spending and expectations of tighter policy are arriving alongside expensive oil. Investors are asking whether the stock selloff could keep the Fed from raising rates, which makes Friday's jobs data the key event of the week.

market impact

US stocks and Treasuries: AI doubts and Fed hike bets weigh on markets

• ▼Brent pressure down — Iran-Qatar talks ease the geopolitical risk premium in oil prices

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instruments