Tech stocks struggle on AI spending worries, elevated yields

Key points

• Tech stocks led Wall Street’s main indexes lower overnight after a report that OpenAI’s annualised revenue was US$20 billion less than the company previously signalled hit sentiment.
• “For now, though, the price action suggests investors are becoming more selective about where they want exposure and, importantly, what price they are prepared to pay for future growth,” he said in a note.
• Chanana said higher sovereign yields and now rising corporate issuance to fund AI infrastructure mean capital is becoming “both more expensive and more selective, which puts balance sheets and the quality of future earnings firmly in focus.”

Sentences selected automatically from the original article by Free Malaysia Today.