US stocks end mixed as AI spending concerns temper gains

US stocks surrendered early gains to finish the session mixed on Friday, reflecting uneven earnings results and growing doubts over whether the heavy AI-related capital expenditure pledged by major tech firms will ultimately deliver the returns outlined in their guidance. The S&P 500 was broadly unchanged, up 7.16 points (0.10%), while the Dow slipped 117 points (0.25%). The Nasdaq 100 managed a modest rise of 0.51%. Despite the mixed session, all three main indices remained on course to notch strong gains for October, with the Nasdaq up nearly 4% as continued AI-related dealmaking helped extend the rally among the Magnificent Seven stocks.

Nvidia reversed earlier gains and slipped into negative territory despite unveiling new partnerships with South Korean firms. Meta fell 2%, extending a near 15% slide since signalling significantly higher capex for next year. AbbVie also lost around 5% after detailing the potential effects of drug-pricing cuts proposed under the Trump administration. Amazon, however, surged 10% after posting its fastest cloud-unit growth in almost three years. Among the oil majors, Chevron advanced about 3% on stronger earnings, while Exxon Mobil eased after reporting a decline in quarterly profit.

Meanwhile, European equities declined, with the STOXX 50 falling 0.70% and the STOXX 600 declining 0.50% on Friday, as mostly disappointing earnings weighed on optimism for European growth. The euro slipped towards $1.15, its lowest level since late July, as investors digested comments from ECB officials and their potential impact on the central bank’s policy outlook. ECB policymaker François Villeroy de Galhau noted that the bank’s monetary stance is appropriately positioned but could be adjusted if risks increase. His remarks followed the bank’s decision to hold interest rates steady for a third consecutive meeting, with ECB President Christine Lagarde stating that policy is ‘in a good place’ and signalling limited appetite for further easing after eight quarter-point cuts through June.

Earlier data showed Eurozone inflation cooling to just above the bank’s 2% target, while third-quarter GDP growth exceeded expectations and October business surveys pointed to improving sentiment. Against this backdrop, London’s FTSE 100 ended the session lower by 0.44%.

Turning to South Africa, a blend of stronger domestic confidence, expectations of looser global monetary policy and renewed appetite for riskier assets has supported a multi-month rally in local equities, placing the market on track for its longest winning streak since 2013. Even so, the JSE All Share Index slipped 0.39% at Friday’s close, while the Top 40 fell 0.42% and the Industrial 25 declined 0.85%. The Resource 10, however, managed a modest gain of 0.09%.

In Asia, equities closed the session mixed, with the Nikkei rising 2.12%, while the Shanghai Composite and Hang Seng fell 0.70% and 1.25%, respectively.

In commodities, Brent crude futures edged higher to around $65.04 a barrel on Friday, as unease over potential military escalation in Venezuela briefly outweighed prevailing concerns of an oversupplied market. Fuel-related products also firmed amid the risk of possible US action against Venezuela, adding to short-term supply constraints following Washington’s sanctions on Rosneft and Lukoil aimed at limiting crude and refined product flows to Asia. However, the broader picture continued to point to plentiful supply, supported by strong production levels and high tanker activity. OPEC+ members are expected to confirm a December output increase of 137 000 barrels per day as part of their strategy to reclaim market share, in line with rising production from operators in the US and the North Sea. Meanwhile, the volume of oil stored in tankers reached a record 1.4 billion barrels this week, reinforcing expectations of elevated global inventories.

Metal commodities closed lower, with gold down 0.64% trading at $3 997.63. Silver and platinum fell 0.51% and 2.26%, respectively.