A sharp selloff in technology shares and rising oil prices sent major equity indexes lower on Thursday, reviving demand for the relative safety of government bonds as investors weighed the sustainability of artificial-intelligence capital expenditures against fresh supply risks in the Middle East. The S&P 500 declined 1.1 percent and the Nasdaq 100 fell 2.2 percent, while a gauge of chipmakers dropped 5.5 percent. Meta Platforms sank 5.5 percent after the company disclosed plans that intensified concerns over the scale of debt-financed AI infrastructure spending. Brent crude topped $111 a barrel following deadly attacks in Saudi Arabia that heightened fears of further disruptions to energy supply. The move in oil overshadowed some inflation worries and helped push investors toward Treasuries, with the ten-year yield falling 12 basis points to 5 percent. The Japanese yen and Swiss franc led gains among major currencies in a broad risk-off shift.
Ian Lyngen at BMO Capital Markets observed that tech stocks came under pressure amid renewed AI valuation fears and that the rebound in energy prices contributed to the risk-off tone, with Treasuries emerging as a primary beneficiary. James McCann at Edward Jones noted that, following an extraordinary run in technology shares, markets are becoming more demanding around evidence of the payoff from AI investments and worries about the sustainability of that spending amid higher rates. He remained constructive on large-cap stocks but advised that investors should look to ensure good diversification in portfolios. Meta’s results opened a technology earnings season expected to focus on runaway AI expenditures and companies’ efforts to demonstrate returns on investment. Alphabet, Microsoft, and Amazon, three of the other largest spenders on data centers, are scheduled to report next week. Elsewhere, Chinese stocks were pulled into a bear market, with $2.4 trillion erased since a peak in May, as a protracted slump in consumption and mounting doubts over the profitability of AI companies left them among the world’s worst performers. French bond stress also deepened, with spreads widening to a 15-year high amid a broad flight from risk and the threat of another weekend of protests, reinforcing the country’s status as the weak link in global markets.
AI Capital Spending Raises Credit and Valuation Questions
The pressure on Meta reflected broader anxiety over the financing of the AI buildout. A measure of the company’s credit risk reached a record high as five-year credit default swaps rose as much as 8.9 basis points to around 119.3 basis points a year, the highest intraday level since the swaps began actively trading about a year earlier. Spreads on credit default swaps tied to Oracle, Microsoft, and Broadcom also widened. Meta stated it has agreed to spend about $825 billion in the future on various leases and contracts, many related to computing power and infrastructure for artificial intelligence; in July it had reported future spending commitments of almost $700 billion. The company raised the lower end of its capital-expenditure guidance for the year to a range of $135 billion to $145 billion from the prior $130 billion to $145 billion, without providing guidance for the following year. Free cash flow for the quarter turned negative, to an outflow of $2.12 billion, compared with an inflow of $784 million in the second quarter and a positive $10.625 billion in the year-earlier third quarter. Risk premiums on Meta’s 5.25 percent notes due 2036 widened 7 basis points to 1.21 percentage points over Treasuries.
Vadim Solovey, founder and chief executive of DoiT International, remarked that Meta added about a hundred billion dollars of non-cancelable commitments in one quarter and is signing data-center leases of 18 to 30 years at the top of a scarcity market, calling that a mistake for almost any other buyer. He noted that the social-media company can sustain massive AI spending because its core business runs on the same compute. While the market has widely anticipated that Meta may issue its next batch of bonds after earnings and before the Federal Reserve’s policy meeting and the November 3 election, rising spreads could increase its financing costs. Vishwanath Tirupattur, global director of fixed income research at Morgan Stanley, said another 100-basis-point move will not be a deterrent for this capital expenditure, though the impact will not be uniform and certain borrowers at the lower end of the ecosystem may become more challenged. He added that much of the spread widening since the start of the year has simply reflected the market digesting a wave of new deals, and that if capital expenditure slows and companies issue less debt, credit markets will take that well.
Blackstone President Jon Gray pushed back against bubble concerns just days after Ken Griffin said he feared the industry was almost certainly headed in that direction. Gray told Bloomberg Television that when one thinks about a bubble, one thinks about building capacity and then hoping the demand comes, whereas with AI one is building capacity and hoping one can keep up with the demand. He described the dynamic as very different from the 1990s telecom bubble and pointed to an AI consulting firm Blackstone created with Anthropic called Ode, saying the firm cannot keep up with customer demand, which is almost parabolic. Gray, who has made AI the biggest bet of his career by amassing a $200 billion data-center empire and embedding AI into the hundreds of businesses Blackstone controls, noted on an analyst call that AI-related holdings represent about 7 percent of the firm’s roughly $1.4 trillion of assets under management. He indicated the firm may explore dedicated products for chip financing, often within broader commingled vehicles. Blackstone has focused on building the infrastructure and long-term assets needed to power the AI boom. Gray acknowledged that so-called neoclouds such as CoreWeave have struggled to obtain adequate financing, with CoreWeave shares plunging about 25 percent the prior week as rising bond yields sparked concerns over its debt-fueled expansion. He said the main business for the neoclouds is quite good and that these companies will find sources of capital. In March, CoreWeave raised $8.5 billion backed by chips and contracts with Meta, with Blackstone as an anchor investor. The following month Blackstone folded its growth business into a new division, Blackstone N1, led by Jas Khaira, and later partnered with Google to create Crux AI. Gilles Dellaert, global head of Blackstone’s credit and insurance business, previously noted that the firm finances power, chips, and transmission across the ecosystem. Other executives have also pushed back on bubble warnings; Deutsche Bank Chief Executive Christian Sewing said after Griffin’s remarks that he sees no reason to worry about a sharp reversal in asset prices any time soon.
IPO Market Stalls as Anthropic Looms and Energy Shares Face Stretch
The same valuation and spending debates that weighed on Meta and the broader technology complex have left the US initial public offering market effectively paralyzed. West Riggs, head of equity capital markets at Truist Financial, said people are truly paralyzed and that the market has to sort itself out. AI infrastructure companies preparing US listings, including London-based Nscale and Singapore’s DayOne Data Centers, continue to pitch their central importance to the sector’s buildout, yet with shares of peers such as CoreWeave plunging, investors’ appetite for risk-taking has evaporated. October is on track for the slowest month of the year by US IPO volume. That marks a sharp turn from a roaring pace that saw $162.6 billion raised through the end of September. Wall Street is pinning hopes for a record fee year on Anthropic’s anticipated debut next month, which could raise as much or more than SpaceX’s listing. Companies gauging investor willingness are clamoring for Anthropic to deliver a needed win. Riggs said it does not feel too encouraging for the rest of 2026, with a lot of optimism for 2027 particularly in software, but overall things feel pretty sluggish. Even some non-AI deals appear pushed. Roughly a dozen companies have yet to advance IPO plans despite public filings. Smart-ring maker Oura and Bamboo Insurance Services postponed debuts as interest rates climbed and the Iran war dragged on. Oura faced pushback on a potential fully diluted valuation of about $15 billion. Will Braeutigam of Deloitte & Touche said the bid-ask spread has blown out and that a stalemate on valuation must be rationalized before the broader market can move forward. With just $587.7 million raised through US IPOs since the end of September excluding blank-check firms, the fourth quarter is shaping up as a dud for every company but Anthropic. Braeutigam anticipates that six or fewer companies will raise $500 million or more on US exchanges through year-end, with most clients focused on the second quarter.
In a related development, SpaceX is working with Apollo Global Management, Nvidia, and dozens of other firms on a new partnership program to deploy and improve its Grok AI systems. More than 130 companies gained early access to the Super Intelligence Partner Network, including Snowflake, Databricks, Bain & Co., and Booz Allen Hamilton, along with Galatiq, which provides forward-deployed engineers. Elon Musk’s conglomerate, long viewed as far behind OpenAI and Anthropic, surprised Wall Street this week by reporting a profit in its artificial-intelligence unit, mainly tied to computing deals for its data centers in Memphis. Executives said adoption of Grok products, including the Grok Bot agent, has been rising. Grok Bot had more than 800,000 paid weekly users as of October, doubling from the prior month, according to SpaceX President Gwynne Shotwell. Companies are increasingly using Grok Bot as a force multiplier across sales, marketing, IT, and engineering. SpaceX has sought to gain ground by acquiring Cursor and leveraging relationships with firms in Musk’s orbit; Apollo was among the first Wall Street firms to test Grok internally following a financing tied to chip usage.
Energy shares, which have rallied on windfall profits from elevated crude prices, now look stretched to some traders as earnings approach. The S&P 500 Energy Sector Index is expected to post an over 130 percent year-over-year gain in earnings per share. ExxonMobil has pre-reported that higher refining margins are expected to increase third-quarter earnings by around $4.5 billion, and analysts’ profit estimates for Exxon and Chevron have more than doubled from a year earlier. Paul Hickey of Bespoke Investment Group noted that when analysts aggressively raise forecasts in the weeks leading up to earnings, it sets a higher bar and sectors are more likely to see a sell-the-news reaction. Oil advanced further on Thursday after the Saudi attacks, yet energy stocks still fell about 2 percent in line with the broader market. The Energy Index reached a 50 percent year-to-date increase in under 200 trading sessions, a pace that in other sectors has often been followed by declines by year-end. The last comparable ascent occurred in 2022 amid the Russia-Ukraine war; the benchmark ended that year up 59 percent but then lagged for three years as prices normalized. Energy stocks are the best-performing S&P 500 sector this year, with Brent up more than 80 percent. The S&P Composite 1500 Oil & Gas Refining & Marketing Index is up nearly 160 percent year-to-date, while oil-field services stocks have gained 29 percent. Adam Turnquist of LPL Financial said Brent is trading above the $110 resistance level and could climb over $120 if it holds, while diesel has become overbought and risks a pullback. He suggested a possible flip in relative performance if diesel fails to break resistance, with oil services rebounding relative to explorers and refiners. Investors have returned to the State Street Energy Select Sector SPDR ETF with net inflows in the fourth quarter after withdrawals earlier in the year. SLB is expected to report Friday, Phillips 66 on October 28, Exxon and Chevron on October 30, and ConocoPhillips and Marathon Petroleum in November.
Labor Market Stability and Banking Adjustments Amid Broader Cost Pressures
US labor-market data offered a counterpoint to the risk-off tone. Initial jobless claims fell by 6,000 to 194,000 in the week ended October 17, a three-month low and below the median economist forecast of 200,000. Continuing claims rose by 25,000 to 1.73 million, a six-week high. Claims have clung near levels not seen since the 1960s even as businesses face mounting price pressures, including from soaring energy costs. High-profile cuts at eBay and Kroger have not translated into widespread layoffs. The four-week moving average of new applications fell to 197,750, the lowest since 2022. Unadjusted claims dropped by more than 19,000, with the largest declines in Ohio, Tennessee, and California.
Barclays posted the steepest slump among Wall Street peers in third-quarter bond trading and announced plans to cut 5,000 jobs, roughly 5 percent of its headcount, as Chief Executive CS Venkatakrishnan seeks to reduce costs and lean into artificial intelligence. Fixed-income and currency trading generated 19 percent less than a year earlier, bringing in £1.01 billion ($1.4 billion), a more dramatic drop than at JPMorgan, Goldman Sachs, and Bank of America. Venkatakrishnan said he was disappointed and that the fixed-income franchise, a key business that has weathered tough quarters, needs investment to improve. Equity revenue surged 47 percent, the best performance since at least 2009, the year after the firm acquired Lehman Brothers’ North American business. The bank is rebalancing toward equities, with equity derivatives and prime driving about 90 percent of equities growth while rates and credit intermediation have been weak. Further adversity in September reflected the macroeconomic environment. Investment-bank income of £3.13 billion missed expectations; the UK retail unit was broadly stable and the US consumer arm roughly flat. The bank stuck to its targets, reported operating expenses largely as expected, and announced a £500 million share buyback. JPMorgan analysts noted strong cost discipline and Jefferies called the cost-reassurance effort helpful. Shares were little changed in London after paring earlier losses.
US Midterm Dynamics, Diplomatic Caution, and Post-Pardon Litigation
Political developments in the United States and its immediate neighbors added another layer of uncertainty. Canadian diplomats working in the US have been directed to stay away from candidates running in the midterm elections and to keep a low profile to avoid allegations of political interference. Under written guidance distributed Tuesday, officials are barred from meeting with or even being in the same room as midterm candidates—all House candidates and a third of the Senate—unless given special permission. They may still meet elected representatives not up for reelection if necessary but have been told to avoid photographs alongside any elected US officials. The measures, described in an internal memo as a very risk-averse approach, apply until the November 3 vote and cover nearly 500 Canadian diplomatic staff at the Washington embassy and 12 consulates. The House is seen as virtually certain to swing to Democrats while the Senate is essentially a tossup. With Trump’s approval ratings near a record low, Republicans are campaigning actively in seats once considered safe, such as Kansas and South Carolina. Trade talks collapsed two months ago after Trump announced a preliminary deal, and formal negotiations have not resumed. Trump has threatened to raise tariffs on Canadian autos to 50 percent from 25 percent on January 1. Prime Minister Mark Carney and Ontario Premier Doug Ford rejected suggestions that their advocacy against US tariffs constitutes interference. Ford said he has no interest in interfering in American elections. Carney noted that the White House initiated the trade war and that Canada’s actions serve Canadian workers, families, and the economy. The guidance preceded a US embassy fact sheet alleging a concerted Canadian effort to sway the election, citing comments by Industry Minister Melanie Joly and an Ontario government television advertisement quoting Ronald Reagan that had infuriated Trump and led him to terminate talks. A Canadian foreign-affairs spokesperson said the government always instructs diplomats to limit public events and stakeholder engagement during election periods in their host country. Trump’s tariffs have been an election issue in battleground states such as Maine and Michigan. Certain Canadian sectors—aluminum, steel, auto manufacturing, and lumber—have been badly hurt. Talks fell apart on August 21; Trump then placed 50 percent tariffs on about $20 billion of Canadian items and imposed further measures including alcohol bans and restrictions on government contracting. Canada responded with its own 50 percent counter-tariffs. Carney said he and Trump had a lengthy call Wednesday that included trade, but there is no sign of formal negotiations resuming.
In Michigan’s closely contested Senate race, Republican Mike Rogers and Democrat Abdul El-Sayed exchanged sharp attacks in their final debate. Rogers accused El-Sayed of ties to the Muslim Brotherhood; El-Sayed implied Rogers is a Trump puppet bought by billionaires and responsible for the war in Iran. Rogers sought to appeal to Jewish voters uneasy about El-Sayed’s stances on Israel, citing concerns about daughters wearing Stars of David on Michigan campuses. El-Sayed linked soaring fuel prices and Trump’s tariffs to Rogers in an effort to reach white working-class and rural voters. Polls show a close contest with a shrinking pool of undecided voters; more than 12 percent of absentee ballots had been cast as of Thursday, and early in-person voting begins Saturday. Democrats need four seats to flip the Senate, and holding the seat of retiring Gary Peters is key even as GOP seats in Texas, Alaska, and Kansas look vulnerable. Advertising spending has topped $280 million. Two years ago Elissa Slotkin defeated Rogers by more than 19,000 votes. El-Sayed recently visited a soybean farm in Gratiot County, a region Trump won by two-to-one in 2024, where farmers said the trade war has priced Michigan crops out of Canadian and Chinese markets and the Iran war has raised diesel and fertilizer costs. After a record $3 billion in agricultural exports in 2024, shipments of wheat, soybean meal, apples, and cherries plummeted in 2025. Rogers has courted Black voters in Detroit with a homeownership plan and has criticized El-Sayed for focusing more on the Middle East than Michigan. Though Trump is scheduled to rally in Port Huron on Sunday, Rogers has called for an end to the trade war with Canada and has taken issue with Trump for waiving sanctions and striking a diesel-import deal with Russia. He has supported the Iran war but said it is now time to end it because of fuel-price impacts. Former President Barack Obama plans to campaign for El-Sayed on Saturday; Representative Alexandria Ocasio-Cortez, who contributed $1 million, joined him last week. El-Sayed’s challenge includes winning over Jewish voters uncomfortable with his rhetoric and links to podcaster Hasan Piker. A group called Nonnegotiable Michigan has demanded he recognize Israel’s sovereignty and stop claiming Israel caused the Iran war. Michigan has about 80,000 Jewish residents and more than 200,000 Muslim residents. Outperforming in rural areas hurt by tariffs and inflation could help offset base fissures.
Separately, dozens of people pardoned by President Trump after convictions for assaulting or interfering with law enforcement on January 6, 2021, are now suing the US government for millions of dollars, alleging mistreatment by prosecutors, agents, and prison officials. At least 199 people have filed January 6-related cases, and more are expected; 53 of the plaintiffs so far were convicted at trial or pleaded guilty to assaulting, resisting, or impeding officers. Settlements would be paid from the Judgment Fund. Former prosecutors said convictions were secured because defendants were guilty and evidence was overwhelming. Trump has expressed support for the defendants but has not committed to compensation. The Justice Department has not signaled how it will handle the cases. At least five plaintiffs are former clients of Associate Attorney General Stanley Woodward. Early lawsuits preview possible government defenses, including immunity for discretionary charging decisions, the two-year statute of limitations, and the presumption of probable cause from grand-jury indictments. Two lawyers, Peter Ticktin and Alexander Lonstein, are handling the bulk of the cases; Ticktin expects to file on behalf of more than 400 people. The claims proceed under the Federal Tort Claims Act. Former prosecutor Michael Gordon said the Capitol attack was the most filmed, documented crime scene ever and that settlements would create challenging precedents.
Housing Policy, Corporate Leadership Pressures, and Live-Music Consolidation Risks
The Treasury Department proposed regulations to bar large institutional investors from buying additional single-family homes, implementing a controversial provision of the bipartisan housing law passed this summer. The ban, which prohibits investors with more than 350 houses from purchasing more single-family homes, takes effect January 7. Treasury acknowledged the short runway and said it intends a phased rulemaking approach. The restrictions formed part of President Trump’s populist affordability pitch. Critics argue the policy could chill builder activity and drag on supply. David Dworkin of the National Housing Conference said the bottom line is whether the market continues to build desperately needed rental housing; if builders stop investing in rental housing, the affordable-housing crisis will be exacerbated. The law also eases development of factory-built housing and encourages localities to remove construction barriers.
Chief financial officers face the highest risk of replacement in the coming months, according to a Boston Consulting Group survey of global CEOs. Almost 60 percent of CEOs plan to replace a C-suite member in the next six months, with CFOs the most likely to go; COOs, CHROs, and CMOs are also at risk, especially at large companies. The impetus is ensuring leadership teams have the skills required for an AI-driven world. CFOs are under particular pressure amid reaccelerating inflation stemming in part from the war in Iran. Over a quarter of CEOs said their CFO posed the greatest threat to their own job security. Turnover in the top finance seat at S&P 500 and Fortune 500 companies reached 18.3 percent in the first six months and is on track for a post-pandemic high. Recruiters cite a mismatch between what CFOs are now expected to do and what they were originally hired for; the job has become materially larger. Nike, Oracle, Hershey, and Lyft are among companies that appointed new CFOs this year. CEO turnover through June held near the ten-year average of roughly 11 percent. The BCG survey of 645 CEOs and 500 non-executive employees found a striking trust gap: nearly 90 percent of CEOs said they are confident employees trust their leadership, yet less than half of employees agreed, due in part to communication about AI. Around 40 percent of employees said their CEO has not been forthcoming enough about AI’s impact on roles, and less than 10 percent give top grades for explaining effects on jobs more broadly. At companies that did not invest significantly in upskilling, employees were more likely to believe their jobs would be replaced within five years. Eighty percent of CEOs said they are unlikely to be replaced in the coming 12 months. Sylvain Duranton of BCG said the biggest existential question for CEOs is whether they are the right person for AI.
Live Nation Entertainment faces a potential breakup after a New York federal jury found the company maintains several illegal monopolies, including refusing to let other promoters rent its amphitheaters, and overcharged fans. States want a federal judge to order a corporate split of Live Nation and Ticketmaster, force sales of some venues, and limit future acquisitions. Independent venues and musicians argue a breakup is the only way to restore balance. Some 480 independent venues and 240 music festivals have shut since 2020, with 160 closing this year. Crowbar, a 300-person Tampa nightclub, closed on July 31 after 20 years; Live Nation plans a nearby 4,300-person venue. Ticketmaster handles an estimated 86 percent of the US concert market. Live Nation owns or operates hundreds of US venues including 42 of the top 50 amphitheaters, has stakes in festivals such as Lollapalooza and Bonnaroo, owns dozens of artist-management companies, and controls merchandise and publishing brands. Its revenue last year topped $25 billion versus $11.5 billion in 2019, with adjusted operating income of $2.4 billion. A NIVA survey found 64 percent of independent venues were unprofitable in 2024. The Justice Department and more than 30 states sued in 2024; the department settled after Live Nation’s CEO met with President Trump, though the company denies political interference. States pressed ahead and secured the April jury verdict. Judge Arun Subramanian has not yet ruled on Live Nation’s bid to throw out the verdict or on the breakup request. Live Nation says the industry is fragmented and competitive and that it promotes over 5,000 shows annually in venues it does not own.
Emerging-Market Resilience Tested by Weather, Fiscal Needs, and Local Disputes
In Latin America, Peru’s government is seeking to raise fiscal-deficit ceilings to create room for additional spending that can shield the economy from severe weather and higher global fuel prices. Officials plan to make room for as much as 18 billion soles ($5.2 billion) in additional spending for 2027 by allowing the deficit to rise to 2.4 percent of GDP next year—above the previous 1.4 percent—before converging toward 1 percent by the end of the term. Of that amount, 13 billion soles would go to infrastructure, 2.5 billion soles to cash transfers for vulnerable households, and 500 million soles to fuel subsidies. Finance Minister Elmer Cuba said the package is designed so that 2027 growth exceeds 2026 expansion despite the shocks; congressional approval is required. The measures aim to protect a favorable business climate from a strong El Niño, rising fuel prices, and higher global interest rates. Domestic confidence is high and country risk is lower than in recent years. The government also plans to free funds at Banco de la Nación and expand credit guarantees for small companies. Peru met its fiscal-deficit goal in 2025 for the first time in three years, helped by record mining prices; the rolling 12-month deficit fell to 0.9 percent of GDP in September. The Fiscal Council has warned of risks from laws passed by the previous Congress that could lift the deficit toward 3 percent of GDP and public debt toward 35 percent. The central bank expects 3.2 percent growth this year; Cuba targets closer to 3.5 percent, supported by private investment and high copper and gold prices.
A rare super El Niño is already driving an unusually stormy spring in central Chile, raising further disruption risks for the world’s largest copper producer and its agricultural sector. El Niño is weakening the high-pressure system that normally keeps storms away, allowing more rain-bearing fronts into the region. Additional unsettled weather is forecast, with thunderstorm risks in the Andes. Successive storms since July have forced temporary mine shutdowns, restricted roads and ports, and contributed to a drop in national copper output. Spring rain and hail have delayed corn and other plantings, interrupted vegetable harvests, and caused localized fruit damage. Chile has experienced similar patterns in prior strong El Niños, including more than double normal rainfall in Santiago in 1997.
In Panama, hedge-fund billionaire Louis Bacon and developer John McKeown are locked in a bitter dispute over a proposed $260 million port, Puerto Baru, on the Pacific coast south of David. Ocean Pacific Investments, led by McKeown, describes the 124-hectare project as Panama’s first green port that would relieve pressure on Panama City hubs, integrate with North American and Asian trade routes, and create upwards of 1,100 jobs in the country’s breadbasket region. Six environmental groups argue the facility and resulting cargo traffic would irreversibly damage mangrove forests and the local ecosystem. The Supreme Court is weighing the environmental approval. Ocean Pacific has filed criminal complaints against two nonprofits for slander, libel, and crimes against the economy; the groups said their bank accounts were frozen. Bacon, who owns the nearby Islas Secas eco-resort, has funded opposition efforts, covered legal costs, and commissioned an alternative analysis estimating an environmental toll of around $30 million over 20 years. He has offered to fund additional studies and supports relocating the port roughly 50 miles west. Environment Minister Juan Carlos Navarro said the ministry is obliged to respect the prior approval and will abide by the court’s decision, while expressing deep concern over the lawsuits against NGOs. Advocates say the episode highlights a gap between Panama’s conservation reputation and its treatment of local nonprofits.
Energy Diversification and Forward Indicators
QatarEnergy is seeking additional liquefied natural gas supplies outside the Persian Gulf after announcing its first agreement with Cheniere Energy. Discussions continue with multiple sellers, including from the United States. The push has gained urgency since the prolonged Iran conflict damaged two of QatarEnergy’s production units. Qatar has sharply reduced output because of security risks through the Strait of Hormuz and holds a joint venture in the Golden Pass LNG project in Texas, which is in start-up mode and is expected to reach 18 million tons a year. Ira Joseph of Columbia University’s Center on Global Energy Policy said Qatar needs to rebuild credibility by offering at least one alternate source of supply and that one should also expect an Asian source.
Looking ahead, energy-company earnings will test whether elevated commodity prices continue to support the sector’s outperformance or whether high expectations trigger profit-taking. Technology results next week from Alphabet, Microsoft, and Amazon will provide further evidence on AI spending returns. The Federal Reserve’s policy meeting and the November 3 US election remain near-term focal points for markets, while Peru’s fiscal proposal awaits congressional consideration and Panama’s Supreme Court decision will determine the fate of the Puerto Baru project. Chile’s meteorological service expects additional storm activity, and Qatar’s search for non-Gulf LNG supplies is ongoing.
