U.S. stocks fell nearly 2% over the past week due to concerns about the profitability of artificial intelligence (AI) investments. As shares of AI-related companies weakened, investors shifted to safer assets like U.S. Treasuries, leading to a decline in related yields.
According to the International Finance Center, the S&P 500 index closed at 7,659.4 on October 16, down 1.95% from the previous week. The Nikkei 225 index in Japan also dropped by 5.37%.
The decline in U.S. stocks is attributed to worries over AI investment profitability. The International Finance Center reported that at least 47 major AI infrastructure projects in the U.S. have faced delays, cancellations, or opposition this year.
The weakness in AI stocks also impacted the Treasury market. As investors reduced their exposure to riskier assets and sought safety, the yield on the 10-year U.S. Treasury note fell by 17 basis points to 5.07%. The yield on Germany's 10-year bond also decreased by 5 basis points to 3.43%.
International oil prices rose amid ongoing tensions in the Middle East. Brent crude increased by 4.91% over the week, reaching $109.86 per barrel. President Donald Trump has hinted at the possibility of resuming attacks on Iran, contributing to geopolitical uncertainty.
Some economic indicators in the U.S. showed improvement. Industrial production in September rose by 0.7% compared to the previous month, surpassing the prior month's growth rate of 0.1%. This increase is believed to be supported by a rise in large-scale AI investments.
In the foreign exchange market, the dollar weakened. The dollar index fell by 0.37% to 101.84. The euro and yen appreciated by 0.35% and 0.18%, respectively. Meanwhile, South Korea's credit default swap (CDS) premium rose by 1 basis point to 25 basis points.
According to the International Finance Center, the S&P 500 index closed at 7,659.4 on October 16, down 1.95% from the previous week. The Nikkei 225 index in Japan also dropped by 5.37%.
The decline in U.S. stocks is attributed to worries over AI investment profitability. The International Finance Center reported that at least 47 major AI infrastructure projects in the U.S. have faced delays, cancellations, or opposition this year.
The weakness in AI stocks also impacted the Treasury market. As investors reduced their exposure to riskier assets and sought safety, the yield on the 10-year U.S. Treasury note fell by 17 basis points to 5.07%. The yield on Germany's 10-year bond also decreased by 5 basis points to 3.43%.
International oil prices rose amid ongoing tensions in the Middle East. Brent crude increased by 4.91% over the week, reaching $109.86 per barrel. President Donald Trump has hinted at the possibility of resuming attacks on Iran, contributing to geopolitical uncertainty.
Some economic indicators in the U.S. showed improvement. Industrial production in September rose by 0.7% compared to the previous month, surpassing the prior month's growth rate of 0.1%. This increase is believed to be supported by a rise in large-scale AI investments.
In the foreign exchange market, the dollar weakened. The dollar index fell by 0.37% to 101.84. The euro and yen appreciated by 0.35% and 0.18%, respectively. Meanwhile, South Korea's credit default swap (CDS) premium rose by 1 basis point to 25 basis points.
* This article has been translated by AI.
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