It was a tough night for markets, with the Nasdaq falling 2.6% and the S&P 500 dropping 1.2%. Concerns about the sustainability of AI investment continue to unnerve investors.
Brent crude oil also rose to US$113 ($161) per barrel. Houthi forces in Yemen continue to attack Saudi infrastructure, while The New York Times reports that the US and Israel are planning renewed attacks on Iran.
Gold fell 2% and silver dropped 5.9%, despite US Treasury yields declining as investors sought safer assets. Base metals also finished lower, with copper falling 1.9% and zinc and tin each losing 2%. Thermal coal and LNG rose, giving the energy complex a positive session.
The latest sell-off in metals comes amid concerns about the sustainability of major AI spending plans, including those announced by Meta Platforms (NASDAQ:META). The company’s plans require hundreds of billions of dollars in investment over the coming years, prompting questions about the long-term returns.
Meta shares fell sharply, leaving the company trading at 19 times forward earnings.
Source: Financial Times
Write to Callum Newman at Mining.com.au
Main image: Unsplash
