US Stocks Rise Amid Oil Drop, AI Spending Concerns Persist

US stock indices opened higher on November 2, 2026, with the Dow Jones Industrial Average rising 0.78 per cent and the Nasdaq Composite rising 0.63 per cent. Crude oil prices dropped sharply amid growing hopes of a US-Iran peace deal. Separately, media reports indicated that OpenAI slashed the target for its latest funding round by US$10 billion. Furthermore, Blackstone informed investors that Anthropic might not secure an investment-grade rating after its initial public offering.

The market is reacting to a mix of geopolitical stability and internal tech sector pressures. While the easing of Middle East supply disruptions lifted risk sentiment and drove down oil prices, concerns over Big Tech's high AI spending and lack of strong returns have kept pressure on the tech sector. This spending has led some companies to tap the bond market, raising concerns about debt-funded investments as borrowing costs increase.