Morning Bid: Tipping Point
The AI boom and geopolitical tensions are causing markets and geopolitics to approach a breaking point, according to this week's news. A significant AI-related selloff hit global markets due to concerns about rising interest rates creating funding challenges in the complex web of circular financings in the AI ecosystem. While the Philippine Semiconductor Index experienced seven consecutive daily declines, Asia's tech-heavy indices suffered heavily this week.
South Korea's KOSPI index dropped almost 8% on Thursday, recovering slightly by Friday. The Consumer Price Index (CPI) rose 0.6% last month, increasing 3.7% in the 12 months through September, which spooked markets and boosted bets for another Federal Reserve interest rate hike this month. The IMF highlighted AI risk at its meetings, warning that monetization of AI could deplete equity investments, make debt difficult to service, and lead to non-materialization of future revenue commitments.
Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
