October 19, 2026

AI Concerns Weigh on Markets as Earnings Loom

Latest Publications AI Concerns Weigh on Markets as Earnings Loom

Markets ended the week lower, led by weakness in technology and AI-related stocks. Concerns that higher interest rates could limit future access to capital, along with advances by Chinese chipmakers, weighed on the sector. However, strong chipmaker earnings and guidance showed that AI-related demand remains robust, with no signs of slowing. On the economic front, CPI (Consumer Price Index) and PPI (Producers Price Index) remained elevated, largely due to higher energy prices. Despite the hotter inflation data, investors moved into bonds, pushing the 10-year U.S. Treasury yield down from 5.24% to 5.10%. Houthi attacks on Saudi Arabia disrupted oil flows, pushing crude prices 8.4% higher.

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