Equities mixed as AI concerns and oil prices weigh on sentiment

US equity markets ended Friday lower as the sell-off in chipmakers extended into an eighth consecutive session, the sector’s longest run of declines since the 2008 financial crisis. The S&P 500 slipped 1.10%, the Dow Jones Industrial Average lost 175 points and the Nasdaq fell 2.50%. Over the week, the S&P 500 lost 2% and the Nasdaq declined 5%, while the Dow Jones Industrial Average gained 156 points. 

Concerns over the funding costs facing heavily indebted artificial intelligence (AI) infrastructure companies weighed on sentiment, with CoreWeave tumbling 11.90% and extending its weekly decline to 23.70%. Pressure on the sector also followed relatively subdued revenue figures from Anthropic, while this week’s economic releases pointed to accelerating consumer inflation and sharply higher producer prices, both on a headline and core basis. Among semiconductor stocks, Nvidia fell 1.40%, Micron dropped 5.60% and AMD lost 5.90%. Tesla declined 2.10% and SpaceX fell 1.70% amid speculation about a possible merger between the two companies. 

Looking ahead, geopolitical developments in Ukraine and the Middle East are likely to remain key market drivers as global oil supplies tighten and inflation pressures build. The corporate earnings season is also set to gather pace, with Meta and Tesla due to provide further insight into the volatile artificial intelligence trade. Results are also expected from P&G, Netflix, GE Aerospace and SAP. 

Crude oil climbed above $100 a barrel on Friday, with Brent approaching $110, as supply concerns intensified and demand for shipping fuel remained robust. Prices gained more than 11% over the week, while producers continued to face elevated freight costs and risk premiums for cargoes passing through the Strait of Hormuz, keeping uncertainty over future regional supply high. 

Precious metals finished modestly lower on Friday, as investors adjusted their positions ahead of the weekend. Traders weighed a week of firmer-than-expected US inflation data against a softer US dollar. Gold eased 0.09% to $4 166.68 an ounce, as silver declined 0.80% to $56.98. 

European shares finished the session higher, supported by gains across most major sectors as investors balanced encouraging earnings expectations against lingering inflation concerns. The Euro Stoxx 50 rose 0.60% to 6 204, while the broader Stoxx Europe 600 advanced 0.70% to 644, marking its fifth gain in six sessions. Over the week, the Euro Stoxx 50 gained 0.40%, while the Stoxx Europe 600 advanced 2%.

Banks were among the strongest performers as bond yields extended their sharp decline from the previous session, reducing borrowing costs for indebted companies. ING and Deutsche Bank each gained 1.50%, while UniCredit climbed 1.40% after the European Central Bank approved an increase in the Italian lender’s stake in Commerzbank, clearing a key hurdle for a potential takeover. AI infrastructure shares also recovered, despite continued sector pressure in the US. ASML added 1% and Siemens Energy rose 2%. 

In the UK, the FTSE 100 recovered from earlier weakness to close higher, as strength in defence, consumer and energy shares offset softer banking stocks. The FTSE 100 ended the week approximately 3% higher. Babcock rose more than 3% and BAE Systems gained about 2.50%, while Unilever added 1% and British American Tobacco climbed 2.30%. Shell and BP each rose roughly 0.80%. Pharmaceutical companies underperformed, with AstraZeneca down 2% and GSK losing 0.70%. 

Asian markets mostly rebounded on Friday, 16 October 2026, as technology stocks and chipmakers regained ground. Japan’s Nikkei 225 rose 1.40% to close at 65 324.29, following the previous session’s 4.90% decline. Hong Kong’s Hang Seng Index gained around 0.42%, supported by technology and property stocks, while China’s Shanghai Composite edged 0.06% higher to close at 3 709.71. 

South African equities closed higher at the end of day, with the JSE All-Share Index gaining 1.53% to 110 171.85 points. The Top 40 Index advanced 0.82%, while Resource 10 climbed 1.88%. Financial shares benefitted from lower government bond yields. The rand also strengthened, gaining 0.20% against the US dollar (R16.49) and 0.10% to the pound (R21.95).