New York:Global markets experienced mixed trading trends on Wednesday, influenced by concerns over artificial intelligence (AI) financing and tensions in the Middle East, despite strong earnings from major US tech companies.
According to Anadolu Agency – English, Meta reported a significant 264% increase in its net income for the third quarter, reaching $9.9 billion. In contrast, Tesla experienced a 43% drop in net income, falling to $787 million. Despite the positive earnings reports, ongoing worries about the profitability of large AI investments have complicated asset pricing.
Investors remain cautious about potential escalations in Middle East tensions, which could impact global markets. Additionally, rising oil prices and inflation risks are fueling expectations of monetary policy tightening worldwide. The US Federal Reserve is predicted to maintain its policy rate at an upcoming meeting, with an 86% probability, and possibly hike rates by 25 basis points in December, according to money market estimates.
While the New York Stock Exchange closed positively on Wednesday, subsequent mixed corporate earnings and Middle Eastern tensions prompted a selloff in Asian markets on Thursday. In parallel, US President Donald Trump asserted that military action against Iran was aimed at preventing nuclear weapon acquisition. Unnamed American officials and sources suggested that the US and Israeli militaries have plans for further attacks on Iran post-midterm elections, as reported by the New York Times.
Simultaneously, the US is preparing to evacuate its diplomats in Saudi Arabia amid ongoing attacks, although a State Department spokesperson denied plans for a larger Gulf evacuation. Brent crude prices for December delivery rose 1.8% to $110.7 per barrel, while bond markets showed volatility with the US 10-Year Treasury yield dropping three basis points on Thursday. The US dollar also decreased by 0.1% to 101.5.
In the US, the S&P 500 increased by 0.58%, the Nasdaq Composite by 1.05%, and the Dow Jones Industrial Average by 0.69% on Wednesday, though American indexes began Thursday on a negative trend.
European markets found some relief on Wednesday after starting the week negatively due to protests in France. SAP, a European tech giant, exceeded expectations with its third-quarter revenue surpassing £10 billion ($11.2 billion), projecting up to £36.8 billion ($41.3 billion) this year. France's 10-year bond yield reached a 24-year high, while the yield spread between French and German 10-year bonds neared 160 basis points. The UK's annual inflation hit 3.5% in September, its highest since October 2025, amid rising fuel prices, with public debt exceeding 3 trillion British pounds ($4 trillion).
The UK's FTSE 100 rose 0.19%, Italy's FTSE MIB 30 increased 1.17%, Germany's DAX 40 grew 1.35%, and France's CAC 40 was up 1.06% on Wednesday, although European indexes started Thursday negatively.
Attention is on Turkey's Central Bank monetary policy decision on Thursday, with markets anticipating a 100-basis-point rate cut. Despite strong earnings from SpaceX and Meta, Asian markets remained concerned about AI financing. Rising oil prices due to Middle East tensions impacted the region, particularly for energy-import-dependent Asian economies.
As Thursday's close approached, Japan's Nikkei 225 fell 2.1%, China's Shanghai Composite dropped 1.3%, Hong Kong's Hang Seng declined 2.9%, and South Korea's Kospi was down 3.7%.