Weak Elice debut and AI spending doubts weigh on global markets
Reuters reports Elice Group shares fell nearly 30% below their IPO price while KOSPI lost almost 4%, as investors await results from Meta and other AI giants.
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what happened
Reuters reports that shares of South Korean AI infrastructure firm Elice Group dropped nearly 30% below their initial public offering price on Tuesday. The tech-heavy KOSPI index fell almost 4%, reflecting fragile sentiment after a selloff that derailed some deals.
Attention is now fixed on the huge capital spending plans of the leading AI players. Goldman Sachs expects five AI hyperscalers to lift combined capex to about $1.2 trillion next year. Meta Platforms reports on Wednesday. Oil climbed again as traders weighed whether Donald Trump will extend a waiver easing limits on certain Russian energy shipments, alongside renewed unrest in the Middle East.
why it matters
Investors increasingly question whether AI spending earns more than it costs to finance, and rising borrowing costs sharpen that question. High oil prices keep inflation pressures alive, so major central banks remain cautious. According to Reuters, Federal Reserve officials, including Chair Kevin Warsh, show no rush to raise rates again. Euro Stoxx 50 and DAX futures slipped, while S&P 500 futures rose 0.1%.
market impact
Asian and European indices, oil: weaker AI stocks and higher crude pressure risk assets
instruments
sources
- Korean canary in the AI coalmine — Reuters, 20 October 2026 at 04:36 UTC
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