{"id":73458,"date":"2026-10-22T17:11:22","date_gmt":"2026-10-22T21:11:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/"},"modified":"2026-10-22T17:11:22","modified_gmt":"2026-10-22T21:11:22","slug":"global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/","title":{"rendered":"Global Markets Retreat on AI Spending Jitters and Middle East Conflict"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Tech_Selloff_and_Energy_Volatility_Roil_Markets\" >Tech Selloff and Energy Volatility Roil Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Trump_Invokes_Defense_Production_Act_for_Oil\" >Trump Invokes Defense Production Act for Oil<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Apples_Foldable_Debut_and_OpenAIs_Trillion-Dollar_Valuation\" >Apple\u2019s Foldable Debut and OpenAI\u2019s Trillion-Dollar Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Corporate_Shifts_Coca-Cola_and_Aircraft_Leasing\" >Corporate Shifts: Coca-Cola and Aircraft Leasing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-on-ai-spending-jitters-and-middle-east-conflict\/73458\/#Humanitarian_Crisis_in_Xizang\" >Humanitarian Crisis in Xizang<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Global stocks plummeted<\/strong> as the <strong>Nasdaq 100 fell 2.9%<\/strong> and <strong>semiconductors dropped 6.7%<\/strong>, fueled by intensifying concerns over massive AI capital expenditures and disappointing tech earnings.<\/li>\n<li><strong>President Trump invoked the Defense Production Act (DPA)<\/strong> to expand domestic petroleum production and refining capacity, citing a &quot;national energy emergency&quot; and sending a formal memo to <strong>Defense Secretary Pete Hegseth<\/strong>.<\/li>\n<li><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> launched its first foldable device, the <strong>iPhone Duo<\/strong>, priced at <strong>$1,999<\/strong>; pre-order demand has already pushed shipping estimates into <strong>late January 2027<\/strong>.<\/li>\n<li><strong>The Coca-Cola Company (<a href=\"\/stock\/KO\">KO<\/a>)<\/strong> overhauled its global marketing structure, selecting <strong>Omnicom (<a href=\"\/stock\/OMC\">OMC<\/a>)<\/strong> as its new media partner for North America while retaining <strong>WPP (<a href=\"\/stock\/WPP\">WPP<\/a>)<\/strong> for the majority of international markets.<\/li>\n<li><strong>OpenAI<\/strong> is reportedly nearing a <strong>$30 billion funding round<\/strong> at a staggering <strong>$1.25 trillion valuation<\/strong>, led by investors from the <strong>United Arab Emirates<\/strong> and <strong>Coatue<\/strong>.<\/li>\n<\/ul>\n<hr>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Selloff_and_Energy_Volatility_Roil_Markets\"><\/span>Tech Selloff and Energy Volatility Roil Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global equity markets faced a severe downturn on Thursday as investors grew skeptical of the returns on massive artificial intelligence investments. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> declined <strong>1.2%<\/strong>, while the tech-heavy <strong>Nasdaq 100 (<a href=\"\/stock\/NDX\">NDX<\/a>)<\/strong> saw a sharper <strong>2.9%<\/strong> drop. <strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> shares sank <strong>7%<\/strong> after the company signaled plans to continue aggressive AI infrastructure spending, heightening fears of a &quot;capex bubble&quot; among hyperscalers.<\/p>\n<p>Simultaneously, energy markets surged following <strong>deadly drone attacks<\/strong> on <strong>Saudi Aramco<\/strong> facilities in Saudi Arabia, which claimed three lives and stoked fears of wider Middle East supply disruptions. <strong>Brent crude<\/strong> jumped above <strong>$113 per barrel<\/strong>, prompting a flight to safety that saw <strong>10-year Treasury yields<\/strong> fall to <strong>4.96%<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trump_Invokes_Defense_Production_Act_for_Oil\"><\/span>Trump Invokes Defense Production Act for Oil<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a major policy move, <strong>President Trump<\/strong> issued a presidential determination under <strong>Section 303 of the Defense Production Act<\/strong> to prioritize domestic petroleum production, refining, and logistics. The memo, directed to <strong>Defense Secretary Pete Hegseth<\/strong>, characterizes inadequate energy capacity as an &quot;extraordinary threat&quot; to national security. This action allows the federal government to provide incentives, such as loans and purchase commitments, to expedite energy projects and bypass certain regulatory hurdles.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Apples_Foldable_Debut_and_OpenAIs_Trillion-Dollar_Valuation\"><\/span>Apple\u2019s Foldable Debut and OpenAI\u2019s Trillion-Dollar Valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> officially entered the foldable market with the <strong>iPhone Duo<\/strong>, a book-style device featuring a <strong>7.6-inch inner display<\/strong>. Despite the <strong>$1,999<\/strong> price tag, the device saw immediate sell-outs, with shipping dates slipping to <strong>2027<\/strong> within minutes of pre-orders opening. Analysts at <strong>IDC<\/strong> project Apple could capture <strong>44% of the foldable market value<\/strong> by the end of 2026.<\/p>\n<p>In the private sector, <strong>OpenAI<\/strong> is finalizing a <strong>$30 billion<\/strong> bridge round to reach a <strong>$1.25 trillion valuation<\/strong>. The deal, reportedly led by <strong>UAE-based investors<\/strong> and <strong>Coatue<\/strong>, is intended to secure capital ahead of a potential <strong>2027 initial public offering<\/strong>. The funding comes as OpenAI&#39;s annualized revenue reportedly neared <strong>$50 billion<\/strong> in September.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Shifts_Coca-Cola_and_Aircraft_Leasing\"><\/span>Corporate Shifts: Coca-Cola and Aircraft Leasing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The Coca-Cola Company (<a href=\"\/stock\/KO\">KO<\/a>)<\/strong> announced a significant shift in its agency partnerships to accelerate its &quot;digital-first&quot; marketing strategy. <strong>Omnicom (<a href=\"\/stock\/OMC\">OMC<\/a>)<\/strong> won the coveted North American media account, estimated to be worth up to <strong>$800 million<\/strong>, while <strong>WPP (<a href=\"\/stock\/WPP\">WPP<\/a>)<\/strong> remains the global creative partner and international media lead. <strong>Dentsu (<a href=\"\/stock\/Dentsu\">Dentsu<\/a>)<\/strong> will continue its partnership in Japan and South Korea.<\/p>\n<p>Separately, <strong>Fitch Ratings<\/strong> revised its <strong>2027 sector outlook<\/strong> for aircraft lessors to <strong>&quot;Deteriorating.&quot;<\/strong> While credit profiles remain resilient due to aircraft scarcity, Fitch warned that sustained high fuel prices and rising borrowing costs could significantly weaken the credit profiles of airlines, indirectly impacting lessors like <strong>Air Lease Corp (<a href=\"\/stock\/AL\">AL<\/a>)<\/strong> and <strong>AerCap (<a href=\"\/stock\/AER\">AER<\/a>)<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Humanitarian_Crisis_in_Xizang\"><\/span>Humanitarian Crisis in Xizang<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A powerful <strong>7.0-magnitude earthquake<\/strong> struck the <strong>Nagchu<\/strong> region of <strong>Xizang (Tibet)<\/strong> late Thursday. According to <strong>Xinhua<\/strong>, at least <strong>16 people were killed<\/strong> and <strong>32 injured<\/strong>, with hundreds of homes collapsed in the sparsely populated, high-altitude area. Rescue operations are currently underway despite disruptions to local telecommunications and power grids.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global stocks plummeted as the Nasdaq 100 fell 2.9% and semiconductors dropped 6.7%, fueled by intensifying concerns over 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