Market Watch

Wall Street has suffered a sharp selloff following the US midterm elections, with technology stocks leading losses as investors reassess the AI investment boom. Meanwhile, oil prices and Treasury yields have fallen sharply, raising questions about inflation, economic growth and the Federal Reserve's next move. Laurent Lequeu, Independent Market Analyst and writer of The Macro Butler newsletter, examines whether markets are signalling a deeper economic slowdown or a temporary correction. We also discuss the risk of stagflation, pressure on Asian semiconductor stocks and whether a weaker US dollar could benefit emerging markets.

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Democrats took both houses of Congress, and Wall Street cheered. The Dow jumped 3%, oil slid to around $95 and gold held above $4,000, as traders bet a divided government would be good for business. But not everything rallied: chip stocks have lost nearly a third of their value in five months, and gold is behaving more like a risk asset than a safe haven. Is the post-midterm bounce a buying opportunity or a warning sign? We speak to Tony Nash, Founder and CEO of Complete Intelligence.

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Asian markets are facing renewed pressure as concerns over AI valuations, China's economic outlook and shifting interest rate expectations weigh on investor confidence. Carlos Casanova, Senior Economist at UBP, examines what the US midterm elections could mean for Asian investors, whether the technology selloff signals a deeper reassessment of AI investment, and why Chinese equities continue to struggle despite government intervention. We also explore the disconnect between Hong Kong's booming IPO market and weak stock performance, Indonesia's economic resilience amid market pressure, and the implications of diverging monetary policies in Australia and Japan.

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Apple’s fiscal fourth-quarter revenue rose 12% to just under US$115 billion, narrowly topping Wall Street estimates even as sales in the key Chinese market fell short of projections. The tech giant's results land amid heightened scrutiny over hyperscaler AI spending, just as Americans head to the polls for pivotal US midterm elections that could reshape control of Congress.

Joe Quinlan, Chief Market Strategist at Bank of America, joins The Morning Run to unpack Apple's performance and assess whether its measured AI strategy shields it from heavy industry spending pressures. He also explores what a divided Congress or potential blue wave would mean for the markets, alongside key indicators to watch in the upcoming US employment report.

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Markets weigh the price of the AI build-out

Wall Street's three main indices fell on Friday, with the Nasdaq posting its worst session since early June after Alphabet dropped roughly 12% on its earnings report as free cash flow turned negative. The plunge, paired with Meta's recent US$90 billion capital raise, has heightened investor unease over whether hyperscaler spending on AI can be sustained without straining corporate balance sheets.

Kingsley Jones, Chief Investment Officer at Jevons Global, joins Market Watch on The Morning Run to unpack the diverging fortunes within the Magnificent 7, from Microsoft and Apple's balance sheet resilience to the pressures mounting on fellow tech titans.

He examines what Apple’s new CEO John Ternus must demonstrate to justify its US$5 trillion valuation milestone, how investors should position their portfolios between equities and short-term Treasuries, and the macro implications behind the Reserve Bank of Australia's rate outlook and the Bank of Japan's hawkish pivot.

Tune in for his take on where the risks and opportunities now sit.

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Wall Street is becoming increasingly selective about AI investment, with Amazon's soaring cloud revenue overshadowed by mounting cash outflows, raising questions about whether technology giants can justify their enormous spending. Tim Mulholland, President of TJM Limited, examines how investors are assessing AI returns alongside resilient US growth, persistent inflation and the Federal Reserve's interest rate outlook. We also discuss oil prices above US$110, gold's resilience despite expectations of higher rates, growing concerns in the Treasury market and how the approaching US midterm elections could influence investment strategies in an already expensive market.

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With the Federal Reserve holding interest rates steady at 3.75% to 4%, investors are reassessing opportunities in fixed income, particularly bonds issued by technology giants financing the AI boom. Patrick Chang, Chief Investment Officer, Group Consumer Bank, CIMB, discusses the bank's decision to upgrade its fixed income allocation from underweight to neutral and why hyperscaler bonds remain attractive despite mounting borrowing requirements. We examine whether widening credit spreads signal opportunity or growing financial risks, what could undermine the investment case, and where investors might find the best returns across the yield curve and broader bond market.

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World markets continue to make gains following Anthropic's IPO filing on Monday - helped also by lower crude oil prices on some positive signs coming from Iran's Supreme Leader. David Dietze, Chief Investment Strategist at Dietze Wealth Management Group, shares his view on how sustainable are these AI-led gains and risks we should be paying attention to.

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Anthropic's IPO filing has revived enthusiasm for AI stocks, but its enormous losses and reliance on a handful of major customers are raising fresh questions about valuations and the sustainability of the investment boom. Meanwhile, Wall Street faces key US growth and inflation data as high borrowing costs weigh on housing, oil prices exceed US$110 and gold retreats despite geopolitical uncertainty. We examine whether corporate investment can sustain the US economy as consumers grow more cautious, and how the approaching midterm elections could reshape expectations for fiscal policy, government spending and financial markets.

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Wall Street faces another critical week as investors await earnings from Alphabet, Microsoft and Amazon alongside the Federal Reserve's interest rate decision. Concerns over AI spending are intensifying, with SoftBank's sharp valuation decline raising questions about whether the technology boom can justify its enormous costs. Meanwhile, China's stock market has entered bear territory, India continues to underperform and Indonesia faces capital outflows following an MSCI warning. We examine the Bank of Japan's policy outlook, the Singapore dollar's growing role in carry trades and whether Australia's inflation fight risks triggering a deeper economic slowdown.

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