Tech stocks dip as oil spikes and earnings season approaches
AI-focused shares fell after a brief rebound, while oil prices rose on Middle-East tensions and investors await upcoming earnings reports.
In early trading, AI-related stocks such as CoreWeave and Nebius Group dropped sharply, pulling down broader tech indices after a fleeting Monday bounce. Apple fell 1.2% and Nvidia slipped only marginally, reflecting investor wariness about the debt burden of AI expansion. Analyst Ion Jauregui described the move as a selective dip rather than a genuine buying opportunity.
South Korea's Elice Group, debuting on the market, lost almost 30% of its value, trading below its IPO price. Oil prices surged toward a five-month peak as Houthi attacks on Saudi infrastructure and reported vessel incidents in the Gulf added a geopolitical risk premium. The market now looks ahead to earnings from SpaceX, Netflix, Meta Platforms, Tesla and others, while companies like Halliburton and 3M reported mixed results.
Why it matters
The shifts signal investor caution on AI hype and rising energy costs ahead of key corporate earnings.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 13 The IMF projects global GDP to exceed 3% in 2026, buoyed by AI spending, but warns that ongoing Middle East conflict and rising debt could undermine the outlook.
- Oct 13 Silvana Tenreyro said the world’s economic resilience is being tested and urged that the UK “stay the course” and repair its finances.
- Oct 13 IMF raised its 2026 global growth projection to 3.1% and cut growth forecasts for the Gulf, Latin America and Turkey.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 CoreWeave’s shares dropped 6% and its 2031 bond yields rose above 16% as investors fret over its $50 billion debt load and AI-related borrowing.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
- Oct 20 Asian markets slipped following earlier AI‑stock rebounds, as funding concerns and lower oil prices outweighed the US chip rally.
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