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Pre-Market Performance
U.S. equity futures were lower before the open as higher crude oil prices, elevated Treasury yields and renewed questions around AI-linked financing weighed on risk appetite.
- Dow Jones futures traded at 51,047, down 402 points, or 0.78%.
- Nasdaq 100 futures traded at 31,181.8, down 220.5 points, or 0.70%.
- S&P 500 futures traded at 7,816.8, down 36.0 points, or 0.46%.
European markets also traded in negative territory, led by weakness in Germany and France.
- FTSE 100 stood at 10,444.67, down 13.83 points, or 0.13%. The index traded between 10,367.25 and 10,458.98.
- CAC 40 stood at 7,721.51, down 47.70 points, or 0.61%. The index traded between 7,679.36 and 7,727.50.
- DAX stood at 24,855.95, down 248.41 points, or 0.99%. The index traded between 24,792.79 and 24,997.26.
In commodities and currencies, energy was the main market driver. Brent crude was reported around $104.22 per barrel, up 4.03%, while WTI crude was around $91.86 per barrel, up 4.02%, as Middle East supply risks returned to the center of trading. Spot gold rose about 0.6% to around $4,133.60 per ounce, while U.S. gold futures gained about 0.4% to roughly $4,157.45. The U.S. Dollar Index was little changed near 102.24, and the dollar traded around 158.22 yen.
Hot News
- Oil surge revives inflation concerns: Crude prices jumped as renewed Middle East tensions raised questions about supply security, with Brent moving above $100 per barrel. The rise in energy prices added pressure to a market already sensitive to borrowing costs and inflation expectations. Read more
- Bond yields remain a headwind: Treasury yields stayed near multidecade highs, with the 10-year yield recently around 5.28% and the 30-year yield near 5.66%. Higher yields continued to challenge equity valuations, especially for long-duration growth and technology shares. Read more
- AI financing concerns pressure sentiment: Reports that major technology and AI-infrastructure companies are pursuing very large debt packages added to concerns that the AI buildout could intensify competition for capital. The issue weighed on chip and infrastructure-linked names despite strong demand signals across the sector. Read more
- Chip stocks fail to rally on Samsung outlook: Samsung Electronics projected a record quarterly profit of about $80.2 billion, but global semiconductor shares were mixed to lower, indicating that investors remain focused on valuation, AI-spending sustainability and financing costs. Read more
U.S. Stock Focus
- PepsiCo — Q3 results top revenue expectations, profit outlook reduced: PepsiCo reported better-than-expected third-quarter revenue, helped by overseas demand and stronger global snack volumes. However, the company cut its annual core profit forecast as North American demand remained lackluster and higher costs pressured margins. Read more
- Amazon — Fresh job cuts hit Stores unit: Amazon confirmed a new round of job cuts, primarily in its Stores division, which oversees the company's main e-commerce business. The reductions affected fewer than 1,000 white-collar employees and came during the company's Prime Big Deal Days sales event. Read more
- Aurora Innovation — U.S. grants five-year autonomous-trucking exemption: The U.S. Transportation Department approved a five-year exemption allowing Aurora and other self-driving trucking companies to use cab-mounted warning beacons instead of human-placed roadside warning devices. The decision marks a regulatory step forward for broader commercial deployment of autonomous trucks. Read more
- Alphabet — Waymo tied to autonomous-trucking waiver: Alphabet's Waymo jointly sought the waiver with Aurora, and the decision supports the regulatory pathway for driverless freight operations. Alphabet shares remain in focus as investors assess the commercial implications of autonomous-vehicle approvals alongside its broader AI and cloud businesses. Read more
- Broadcom — Reported $50 billion OpenAI chip-financing effort: Broadcom was reported to be working on more than $50 billion in financing tied to custom AI chips for OpenAI. Shares were indicated lower in premarket trading as investors weighed strong AI demand against concerns about the size and structure of debt-funded infrastructure expansion. Read more
- Oracle — AI chip-purchase financing under discussion: Oracle was reported to be seeking financing for a major chip purchase, with potential structures involving outside financing partners. The update kept Oracle in focus as investors scrutinize the capital intensity of AI cloud infrastructure. Read more
- Nvidia — AI chip demand remains strong, but shares ease premarket: Nvidia shares dipped about 0.6% in premarket trading even as reports pointed to large potential financing packages for AI-chip purchases. The move suggests investors are balancing powerful demand for Nvidia hardware against broader concerns over funding, yields and concentration in the AI trade. Read more
- Micron Technology — Memory shares pressured with chip group: Micron fell about 1.2% in premarket trading as semiconductor names came under pressure despite Samsung's record profit forecast. The move reflected caution toward chip valuations and the sustainability of AI-led demand at a time when higher yields are pressuring growth stocks. Read more
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