Brent Hits $111.66 as AI Rout Hits Global Stocks — SkimNews
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- Brent crude jumped 2.6% to $111.66 a barrel Thursday, its highest level in five months, with gasoline prices already up 9.1% in September alone.
- Nasdaq fell 1.5% and the S&P 500 lost 0.8% by mid-morning in New York, with Nvidia — the largest U.S. company by market value — down 2.3%, a drop that reaches index funds inside many retirement accounts.
- Kospi dropped 3.52% to 5,533.77 after recovering the prior day, leaving South Korea's benchmark more than 40% below its June peak following a 7.57% plunge on Oct. 15 that triggered a circuit breaker.
- Nikkei 225 lost 2.65% and the Hang Seng fell 3.03%, while China's CSI 300 entered a bear market — a decline of 20% or more from a recent peak.
- Meta fell 5.8% after its profit missed forecasts, Lam Research slid 7.7% after guiding profit slightly below analyst estimates, and CoreWeave dropped 3.8% on worries about the debt it took on to buy Nvidia chips.
- Ken Griffin said Tuesday that investors are "almost certainly" in an AI bubble, comparing AI chips to airline seats that cost little to run once bought, so prices can collapse when supply outruns demand — though he did not tell investors to sell.
- Federal Reserve faces an Oct. 28 decision with markets pricing roughly a 15% chance of another hike and a December increase still widely expected; the 10-year Treasury yield stood at 5.03%, up from 3.97% before the Iran war, with core PCE due Oct. 29 and October payrolls Nov. 6.
Why it matters: The pressure is already reaching households and retirement accounts: gasoline prices jumped 9.1% in September, and Nvidia's 2.3% slide carries into index funds inside many retirement accounts. The 10-year Treasury yield stands at 5.03% versus 3.97% before the Iran war, with roughly 15% odds of a Fed hike on Oct. 28.
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