AI Spending and Oil Prices Unsettle Global Markets

AI spending concerns and rising oil prices unsettle global markets as investors await earnings and key economic data.

US equity futures edged lower Wednesday night as investors weighed corporate earnings, artificial intelligence spending, and climbing oil prices. Dow futures slipped 0.1%, while S&P 500 and Nasdaq 100 futures fell 0.3% and 0.4% respectively. Alphabet shares led the decline, dropping 3% after the company raised its 2026 capital expenditure forecast to as much as $205 billion, reflecting its continued push into AI infrastructure despite mounting investor unease over heavy technology spending across the sector.

During Wednesday’s regular session, the Dow Jones Industrial Average finished nearly flat, the S&P 500 slipped 0.14%, and the Nasdaq Composite lost 0.57%. Asian markets opened on a firmer note Thursday, with South Korea’s Kospi leading regional gains. Japan’s Nikkei 225 advanced 0.68% and Australia’s S&P/ASX 200 climbed 0.60%, while the Hang Seng added 1.33% and the Shanghai Composite dipped 0.19%.

AI Spending and Oil Prices Unsettle Global Markets

Oil markets remained a central focus as geopolitical developments continued to drive energy prices higher. Brent crude rose 2.16% to $96.10 per barrel, while West Texas Intermediate gained 1.75% to $88.34. Fresh US strikes on Iran and heightened regional tensions kept supply concerns alive. Adding to market unease, an unidentified projectile struck a tanker in the Red Sea, though authorities reported no casualties.

Analysts cautioned that sustained crude price increases could keep inflation elevated and further complicate the Federal Reserve’s interest rate path. US 10-year Treasury yields held at 4.661, with UK gilts at 5.037 and German bunds at 3.180, reflecting ongoing sensitivity to the inflation outlook across major bond markets.

Commodities and Upcoming Events

Gold traded at $4,127.12, down 0.60%, while silver slipped 0.46% to $60.015. Crude Oil Inventories data, due today, carry an expectation of a draw of 2.0 million barrels against a prior build of 2.0 million barrels, a result that could add further directional momentum to oil prices.

Investors also look ahead to earnings from American Airlines, T-Mobile, Union Pacific, Norfolk Southern, and Intel. On the data front, the ECB’s Main Refinancing Rate decision lands at 12:15 PM GMT, followed by US Unemployment Claims at 12:30 PM GMT. Both releases carry the potential to move currency and equity markets meaningfully into the close of the session.

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