Meta and Capital One earnings due as tech stocks face uncertainty

Summarised from 2 outlets · Updated 19 Oct, 15:57 · Archive

Meta and Capital One are among companies reporting earnings this week amid broader concerns over AI infrastructure costs.

Meta and Capital One are among major companies reporting earnings this week. Tech stocks suffered steep falls in the second half of last week, with AI compute firm Coreweave dropping by more than a quarter. Investors are wrestling with concerns over the cost of AI infrastructure and ongoing global inflation worries.

Rising inflation increases the likelihood that central banks will raise interest rates, which can prompt investors to move money away from shares into lower-risk assets offering higher returns. Meanwhile, although major tech firms are reporting significant revenue and profits as companies and consumers spend on artificial intelligence, investors worry about whether such spending will be sustained and whether the substantial costs of data centres, advanced chips and supply chains will translate into long-term profitability.

The FTSE 100 fell almost 1 per cent on Monday morning as markets entered a tricky period before the UK Budget. Rumours of a potential rise in bank surcharge taxes have sparked increased short-selling activity against London-listed financial institutions, with short-selling up 69 per cent according to investing platform IG data. NatWest and Lloyds have been particularly affected, whilst HSBC, which has significant global operations, has seen short-selling decrease.

How it is being reported

• Three things to watch on stock market this week after sharp fall in tech share pricesAI compute firm Coreweave dropped by more than a quarter last weekIndependent Business · 19 Oct, 15:40
• Here are the 3 big things we're watching in the stock market this weekMeta and Capital One are set to report earnings. We'll also hear from plenty of important companies outside the Club portfolio.CNBC · 18 Oct, 16:24

In this story: Meta · Capital One · Coreweave · FTSE 100 · NatWest · Lloyds · HSBC · UK

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