Investment Daily: US stocks fell amid AI and oil concerns; Treasuries rallied
23 October 2026
Key takeaways
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US stocks and Treasury yields fell.
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European stocks fell; government bonds mixed.
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Asian stocks fell.
Markets
US stocks declined on Thursday, as renewed AI spending concerns dragged technology stocks sharply lower. A surge in oil prices also weighed on market sentiment. The S&P 500 fell 1.2%.
US Treasuries rallied as losses in AI-related stocks and French government debt generated haven demand. 10-year yields dropped 17bp to 4.95%.
European stocks fell on Thursday as higher energy prices weighed on investor sentiment. The Euro Stoxx 50 closed 1.9% lower. The German DAX closed 1.1% lower, while the French CAC was down 1.4%. In the UK, the FTSE 100 lost 0.3%.
European government bonds traded mixed. 10-year German bund yields dropped 9bp to 3.33%, while 10-year French bond yields rose 7bp to 5.07%. In the UK, 10-year gilt yields fell 5bp to 5.33%.
Asian stock markets mostly fell on Thursday, amid renewed AI concerns and higher oil prices. Korea’s Kospi dropped 3.5% and Japan’s Nikkei 225 lost 2.7%. Elsewhere, Hong Kong’s Hang Seng fell 3.0%, while China’s Shanghai Composite was down 1.5%. India’s Sensex also closed 0.6% lower.
Crude oil prices jumped on Thursday amid heightened geopolitical tensions. WTI for December delivery settled 2.4% higher at USD99.5 a barrel.
Key Data Releases and Events
Releases yesterday
The Bank of Korea (BoK) delivered a hawkish hold, following pre-emptive rate hikes in July and August. Further tightening is likely given strong growth prospects and upside inflation risks.
The Philippines central bank raised its policy rate by 50bp, surprising market consensus of a 25bp hike, amid concerns over broadening inflationary pressures. It leaves the door open to more rate increases.
Releases due today (23 October 2026)
In the US, the composite PMI should be consistent with solid near-term growth momentum. Price component may rise.
In the Eurozone, the composite PMI may fall on weaker business sentiment amid elevated energy prices, but is expected to remain in expansionary territory.
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