Global stocks fall on tech concerns and rising oil prices

Summarised from 2 outlets · Updated 22 Oct, 17:58 · Archive

Equity markets worldwide dropped on Thursday as investors worried about artificial intelligence spending sustainability and Middle East tensions pushed oil prices higher.

Global stock markets fell on Thursday as investors worried about the sustainability of artificial intelligence spending and rising oil prices stoked inflation concerns. The FTSE 100 in London ended down 27.85 points, 0.3%, at 10,725.03. The FTSE 250 fell 228.07 points to 24,211.71 (down 0.9%), and the AIM all-share dropped 12.19 points to 750.93 (down 1.6%). European markets also declined, with Paris's CAC 40 down 1.4% and Frankfurt's DAX 40 down 1.1%.

In New York, the Dow Jones Industrial Average was down 0.3%, the S&P 500 down 1.1% and the Nasdaq Composite down 2.0% at London's closing bell. The global sell-off came as Middle East conflict concerns pushed oil futures higher, whilst investors questioned whether technology companies' heavy artificial intelligence investments would generate returns. On Wall Street, Meta Platforms slid 5.6% despite reporting better-than-expected third quarter revenue. Meta's chief financial officer Susan Li said the company's AI agent Muse required significant computing power, meaning expanding its user base would require substantial additional investment and rising serving costs. IBM fell 1.1%, Lam Research dropped 10% and Tesla fell 0.9% after earnings reports.

AJ Bell investment director Russ Mould commented that concerns about AI spending sustainability and rising oil prices had hurt markets. Trade Nation analyst David Morrison described the market reaction as a 'worrying reversal in investor sentiment' after Wednesday's technology-led gains.

How it is being reported

• Stocks rattled by fears over tech sell-off and rising oil pricesIn London, the FTSE 100 index ended down 27.85 points, 0.3%, at 10,725.03.Evening Standard · 22 Oct, 17:28
• Stocks rattled by fears over tech sell-off and rising oil pricesIn London, the FTSE 100 index ended down 27.85 points, 0.3%, at 10,725.03.Independent Business · 22 Oct, 17:28

In this story: FTSE 100 · Meta Platforms · IBM · AJ Bell · Nasdaq · S&P 500 · Russ Mould

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