Money
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Bonds issued by AI infrastructure providers and neocloud companies such as CoreWeave have sunk to increasingly stressed levels, and the CoreWeave selloff shows how climbing borrowing costs are pressuring the riskiest corner of the AI trade.
Why it matters It is the clearest market evidence yet that higher rates can force a repricing in the leveraged end of the AI buildout.
Fed Chairman Kevin Warsh said a US investment surge, helped by sound macroeconomic policy and strong microeconomic foundations, is one of the global economy's most important positive developments; gold fell as investors waited for his remarks at the IMF meeting in Bangkok.
Why it matters The Fed chair's read on investment and policy sets the tone for rates, the dollar and risk assets.
A hot US inflation report revived expectations of another Fed rate increase this year and confidence in the AI trade wavered, giving Wall Street its worst day since July. The sell-off rolled into Asia, where chip shares slid, trading was halted on South Korea's Kospi, Tokyo fell sharply and the Taiwan dollar and South Korean won led currency losses as investors moved into Treasuries.
Why it matters Two of this year's main market supports — rate-cut hopes and the AI trade — wobbled at once, which is what makes this more than a routine down day.
Anthropic's quarterly revenue rose 45% to nearly $17bn, and the company met public-market investors on Wednesday before an IPO expected next month. Analysts and investors say the results strengthen the case for the listing but are unlikely to settle doubts about the wider AI trade.
Why it matters The listing will be a rare hard test of what public investors will pay for a leading AI model maker.
Iran has targeted 24 tankers and other vessels in the Strait of Hormuz over two weeks, including six on Sunday alone, the worst spate since the war began, helping push oil and European gas prices higher. Saudi Arabia says its September output was the highest since the conflict started, but renewed attacks put that revival at risk.
Why it matters The strait is the world's most important oil chokepoint, so sustained attacks threaten both physical supply and energy prices everywhere.
Bank of America will pay $1.2bn to settle violations of money-laundering and sanctions laws, with US authorities saying it failed to flag about $5bn of suspicious transactions, some linked to suspected illicit finance from China and the southern US border.
Why it matters The scale of the penalty is a reminder that compliance failures stay a costly and recurring risk for the largest banks.
JPMorgan and Goldman Sachs posted higher profits, but the results did not excite investors, who remain focused on inflation and rate worries, and bank shares drifted. Jamie Dimon said JPMorgan is tightening some credit terms, while David Solomon said IPO and capital-markets activity remained healthy.
Why it matters Bank results are an early read on the economy, and the muted reaction shows how much rate and inflation concerns now dominate sentiment.
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