Global Markets Fall Amid AI Selling and Geopolitical Shifts

Global markets, including the S&P and Nasdaq, fell due to selling pressure in AI and chip stocks, despite some relief from lower oil and Treasury yields. US construction spending for September declined by 1.9% compared to the 0.3% estimate, while the US ISM manufacturing PMI for October came in at 55.5 versus the 54.5 estimate. Optimism regarding US–Iran diplomacy helped send crude oil sharply lower as Iran talks continued.

The decline in technology shares, driven by AI selling, is dragging down major indices like the Nasdaq. Meanwhile, the drop in crude oil prices, influenced by diplomatic talks, affects potential inflation and business costs. Manufacturing data also showed mixed results, with the US S&P Global final manufacturing PMI for October at 54.9 versus a preliminary estimate of 56.0.