Jakarta:Global markets experienced mixed trading Friday as investor sentiment was affected by worries over artificial intelligence profitability, US monetary policy uncertainties, and rising tensions in the Middle East.
According to Anadolu Agency, there are doubts about whether AI company OpenAI can achieve its projected annual revenue targets, contributing to concerns about the technology sector's outlook. Oracle shares dropped 5.5% on Thursday, and shares of other AI-related companies also saw declines. Investors are now anticipating the corporate earnings season starting next week for further insights into the sector's financial performance.
The Middle East tensions continued to impact oil prices despite ongoing US-Iran negotiations facilitated by regional countries. US President Donald Trump stated Thursday that there would be no attacks on Iran before the upcoming midterm elections, and he expressed reluctance to reach an agreement with Tehran. Trump's remarks came amid reports of attacks on vessels in the Strait of Hormuz. Brent crude futures for December delivery rose above $104 per barrel on Thursday but fell to $102.80 on Friday.
US Federal Reserve officials have signaled that further monetary tightening might be necessary to return inflation to the central bank's 2% target. Fed Governor Christopher Waller suggested that additional rate hikes could be required if economic data aligns with expectations. Selling pressure in US Treasury markets eased slightly after a $6 billion bond buyback operation. The yield on the 10-year Treasury note decreased to 5.22% on Friday. The US Dollar Index also saw a slight decline, while gold prices rose.
On Wall Street, the S&P 500 and Nasdaq Composite both fell on Thursday, while the Dow Jones Industrial Average gained slightly. US stock indexes opened higher on Friday.
In Europe, equity markets faced pressure amid rising energy prices and weakness in bond markets. Bank of England Governor Andrew Bailey warned against complacency in the global financial system and highlighted potential risks from expanding AI-related investments. Germany's exports fell in August, leading to a narrowed trade surplus. European stock indexes opened higher on Friday.
Asian markets mostly declined on Friday due to rising energy costs and AI profitability concerns, although gold mining stocks advanced. Japan's household spending fell in August, with the Nikkei 225 slightly down and China's Shanghai Composite also declining. Meanwhile, Hong Kong's Hang Seng saw gains, and South Korean markets were closed for a holiday.