Business · Markets · 4 hrs ago
AI Spending and War Risks Weigh on Markets and Economic Outlook
After a long rally, U.S. stocks have largely moved sideways since spring as investors seek stronger returns from AI companies.
Companies building data centres are spending heavily, and some have seen their share prices fall when returns do not keep pace.
The Nasdaq fell nearly 3 per cent on Friday, after news of large spending plans from Amazon and Intel.
The columnist argues that government deficits and borrowing by big technology companies are competing for loans and pushing interest rates higher.
Possible renewed fighting with Iran adds another risk, with speculation that conflict could resume after U.S. elections and analysts pointing to political pressures in both Israel and the United States.
More fighting could keep oil prices elevated into next year, although higher prices could benefit Canadian oil producers.
Investors are also watching the U.S. elections and Anthropic’s expected November stock market debut, which could either help revive a rally or draw money away from other investments.
U.S. stock markets have traded largely sideways since the S&P 500 reached 7,500, as investors demand returns from major artificial intelligence investments.
The Nasdaq fell nearly 3 per cent on Friday after news of heavy AI spending by Amazon and Intel.
The article says borrowing by technology companies and government deficits are contributing to higher interest rates.
The author warns that a renewed war involving Iran could push oil prices higher and increase market uncertainty.
Optimists argue that markets could resume rising after Tuesday’s elections and a planned Anthropic public offering in November.
- Who
- U.S. investors, major technology companies and governments are central to the article’s account. The article also discusses Donald Trump and Benjamin Netanyahu.
- What
- Markets are under pressure amid concerns about AI spending, borrowing costs and the risk of renewed conflict involving Iran.
- When
- The article was published on October 30, 2026. It describes a market decline on Friday and discusses elections expected on Tuesday.
- Where
- The market discussion focuses on the United States. The article also refers to Israel, Iran, Canada and Texas.
- Why
- Investors want to see returns from AI spending, while heavy borrowing is driving up interest rates. The author also cites the risk of renewed war and higher oil prices.
Market optimists
John Rapley
Market outlook
Market optimists
They expect the stock market to resume rallying after Tuesday’s elections, as it often does after midterm elections. They say Anthropic’s planned November public offering could help restart a rally.
John Rapley
Rapley warns that AI investment may have reached its limits and that recent spending news has weighed on markets. He says renewed fighting involving Iran could escalate conflict and raise oil prices.
U.S. stock markets plateaued after a years-long rally, according to the article.
Investors have increasingly demanded evidence of returns from major AI investments.
The Nasdaq closed nearly 3 per cent lower after news of heavy AI spending by Amazon and Intel.
Optimists expect the market rally to resume, while the article raises the possibility that the war involving Iran could restart.
Anthropic is expected to enter the stock market, according to the article.
- S&P 500
- Reached 7,500
- Nasdaq
- Closed nearly 3 per cent lower on Friday
- Amazon and Intel
- Their heavy spending contributed to market gloom
- Anthropic
- Planned public offering in November
- Oil prices
- Already well above prewar levels
- The Globe and Mail article
- Published October 30, 2026