Asian stocks fell again on Tuesday after Monday’s technical rebound. With key U.S. earnings reports due on Wednesday, tech stocks remained relatively cautious.
Macroeconomic pressures persist, with Brent crude still hovering around $110 a barrel, leaving confidence in the AI trade fragile. Meanwhile, SoftBank’s credit risk has climbed to its highest level in four years, adding to market concerns.
In the Q3 U.S. earnings season, the market wants to see whether companies can prove that AI will generate enough profit to cover their substantial capital spending. South Korea’s Elice Group was among the first to face this test. Under macroeconomic pressure and amid market skepticism, its shares fell sharply during the Korean market’s opening session.
Next up on Wednesday are key earnings reports from META and TSLA. Both companies need to give the market satisfactory answers:
META: Can revenue growth cover AI capital spending?
TSLA: Can the company’s profits support its AI and robotaxi narrative?
If the companies fail to meet the market’s expectations, U.S. tech stock valuations will face further adjustments. Even results that meet expectations will be constrained by macroeconomic pressures. Only an earnings report that beats expectations can counter the current macro headwinds! Now we wait to see how things play out during tonight’s U.S. trading session! #韩国KOSPI指数跌超2%
Macroeconomic pressures persist, with Brent crude still hovering around $110 a barrel, leaving confidence in the AI trade fragile. Meanwhile, SoftBank’s credit risk has climbed to its highest level in four years, adding to market concerns.
In the Q3 U.S. earnings season, the market wants to see whether companies can prove that AI will generate enough profit to cover their substantial capital spending. South Korea’s Elice Group was among the first to face this test. Under macroeconomic pressure and amid market skepticism, its shares fell sharply during the Korean market’s opening session.
Next up on Wednesday are key earnings reports from META and TSLA. Both companies need to give the market satisfactory answers:
META: Can revenue growth cover AI capital spending?
TSLA: Can the company’s profits support its AI and robotaxi narrative?
If the companies fail to meet the market’s expectations, U.S. tech stock valuations will face further adjustments. Even results that meet expectations will be constrained by macroeconomic pressures. Only an earnings report that beats expectations can counter the current macro headwinds! Now we wait to see how things play out during tonight’s U.S. trading session! #韩国KOSPI指数跌超2%