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- Markets struggle to find direction amid doubts over AI financing, escalating tensions, and new US evacuations of diplomats - Oil prices above $110 a barrel
By Ali Canberk Ozbugutu and Emir Yildirim
ISTANBUL (AA) — Global markets traded on a mixed trend on Wednesday due to the ongoing concerns over artificial intelligence (AI) financing concerns despite strong earnings by US tech giants.
Meta posted a whopping 264% surge to its net income in the third quarter, reaching $9.9 billion, while Tesla’s net income plummeted 43% to $787 million.
As corporate earning reports keep coming in, lingering concerns about the profitability of massive AI investments make it difficult for asset prices.
Investors are concerned that tensions in the Middle East could flare up at any moment.
Rising oil prices and growing inflation risks continue to support expectations of monetary policy tightening worldwide.
The US Federal Reserve is expected to maintain its policy rate at its meeting next week with an 86% probability, while the bank is expected to hike rates by 25 basis points in December, money market estimates show.
- Selloff in Asian markets
While the New York Stock Exchange closed Wednesday on a positive note, mixed corporate earnings released after the markets closed and the Middle East tensions led to a selloff in Asian markets on Thursday.
At the same time, US President Donald Trump boasted that the reason for going to war with Iran was to prevent Tehran from allegedly possessing nuclear weapons.
“It's one of the best things that we've done,” he said, claiming Tehran would have already launched a nuclear strike had Washington not intervened.
Undisclosed American officials and other sources close to war discussions claimed that the US and Israeli militaries had already made plans for new attacks against Iran after the midterm elections, according to the New York Times.
Meanwhile, the US is preparing to evacuate its diplomats based in Saudi Arabia amid ongoing attacks, while State Department spokesperson Tommy Pigott denied that Washington was allegedly going to evacuate personnel stationed in the larger Gulf area.
Additionally, the price of December-delivery Brent crude climbed 1.8% to $110.7 a barrel.
Bond markets continued to be volatile, as the US 10-Year Treasury yield dropped three basis points on Thursday after trading flat on Wednesday, while the US dollar decreased 0.1% to 101.5 on Thursday, following a downward trend on Wednesday.
The S&P 500 rose 0.58%, the Nasdaq Composite grew 1.05%, and the Dow Jones Industrial Average was up 0.69% on Wednesday. American indexes started Thursday on a negative trend.
- European markets find some relief
European markets found some relief on Wednesday after trading negative since the start of the week due to the growing protests in France.
European tech giant SAP beat expectations as its third-quarter revenue exceeded €10 billion ($11.2 billion), while projecting a revenue of up to €36.8 billion ($41.3 billion) this year.
France’s 10-year bond yield rose above 5% and hit its highest level in 24 years, while the yield spread between the French and German 10-year government bonds approached 160 basis points.
The UK’s annual inflation rose to 3.5% in September, marking its highest since October 2025, amid rising fuel prices.
The country’s total public debt is estimated to have exceeded 3 trillion British pounds ($4 trillion) as of the end of September.
The UK's FTSE 100 rose 0.19%, Italy's FTSE MIB 30 increased 1.17%, Germany's DAX 40 grew 1.35%, and France's CAC 40 was up 1.06% on Wednesday. European indexes started Thursday on a negative trend.
All eyes turned to the monetary policy decision of Türkiye’s Central Bank on Thursday as markets expect a 100-basis-point rate cut, following the decision to maintain the bank’s policy rate at 37% in September.
Meanwhile, strong SpaceX and Meta earnings reports failed to list Asian equity markets on Thursday as the regional markets were more concerned about AI financing.
Rising oil prices due to the Middle East tensions also affected the markets in the region, especially due to the negative situation for the Asian economies that are dependent on energy imports.
High inflation and the possibility that high interest rates will remain for longer weighed on the valuations of tech stocks.
Near Thursday’s close, Japan’s Nikkei 225 fell 2.1%, China's Shanghai Composite dropped 1.3%, Hong Kong's Hang Seng declined 2.9%, and South Korea’s Kospi was down 3.7%.
Ali Canberk Özbuğutu
