World Shares Are Mostly Higher and Crude Prices Fall After an Unsettled Day on Wall Street

 

World Shares Are Mostly Higher and Crude Prices Fall After an Unsettled Day on Wall Street

**Tech Stocks Took a Beating on Thursday. By Friday Morning, Global Markets Were Breathing Again. Here's What Changed — And Why It Matters for Your Portfolio.**

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## The Morning After the Storm

Let me tell you about a woman named Rachel. She's a financial advisor in Denver. Manages money for about sixty families — teachers, small business owners, retirees. People who trust her to keep their savings safe.

On Thursday morning, Rachel watched the Nasdaq drop **1.25%**. Tech stocks got hammered. The Philadelphia Semiconductor Index fell **3.4%**. Nvidia dropped nearly **3%**. Oracle and Intel both fell more than **5%** . The headlines screamed about AI valuations and a revenue shortfall at OpenAI.

By Friday morning, Rachel was cautiously optimistic again. Asian markets were mostly higher. European stocks were climbing. Oil prices had pulled back. And the fear that had gripped Wall Street on Thursday seemed to be fading.

"The panic never lasts," she told me. "But the questions do."

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## What Happened on Thursday: A Day of Two Halves

To understand Friday's global rebound, you have to understand Thursday's split-screen session on Wall Street.

**The Dow Held. The Nasdaq Didn't.**

The Dow Jones Industrial Average rose **51.77 points (0.10%)** to close at **51,231.64**. But the S&P 500 fell **0.47%** to 7,765.36, and the Nasdaq Composite dropped **1.25%** to **27,193.34** .

The divergence told the story. The Dow, weighted toward industrial and financial stocks, was supported by a recovery in bond yields and a pullback in oil prices. The Nasdaq, dominated by tech and AI names, was crushed by concerns about the sustainability of AI spending.

**The OpenAI Revenue Shock**

The trigger was a report in the Financial Times that OpenAI's annualized revenue was approaching **$50 billion** at the end of September — well below the **$68 billion** figure that had been widely reported and priced into the market .

That revelation raised a question that investors have been avoiding: **If AI's biggest player is growing slower than expected, is the entire AI infrastructure boom justified?**

The selloff was immediate and concentrated. Oracle and Intel fell more than **5%**. Micron, Broadcom, AMD, and SpaceX each dropped more than **4%**. Nvidia lost **2.89%** .

**The Bond Market Offered Relief**

But while tech was selling off, something important happened in the bond market. Treasury yields **fell**.

The 30-year Treasury yield had spiked to **5.7%** intraday before retreating to **5.6%**. The 10-year yield cooled from a high of **5.35%** to **5.23%** .

The catalyst was a **strong 30-year bond auction**. The Treasury sold **$22 billion** in 30-year notes at a yield of **5.618%** — the highest since 2000 — but demand was healthy. That gave investors confidence that the bond market wasn't in freefall .

**Trump's Iran Comments Eased Oil Fears**

Oil prices had spiked earlier in the week on fears of a military strike against Iran before the midterm elections. But on Thursday, President Trump said on Truth Social that the U.S. was engaging in "productive discussions" with Iran and would **not attack before the November 3 elections** .

That reversed the oil spike. Crude prices pulled back from their highs, easing inflation fears and helping the Dow recover from a 300-point deficit .

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## Friday's Global Rebound: The Numbers

By Friday morning, the mood had shifted decisively. Here's what the global markets looked like.

**Asia: Mostly Higher**

Asian markets shrugged off Thursday's Wall Street weakness and moved higher .

- **Hong Kong's Hang Seng Index:** up **1.7%** to 24,178.27

- **Shanghai Composite:** up **0.1%** to 37,813.79

- **Sydney, Mumbai, Wellington, Bangkok, Manila, and Jakarta:** all in positive territory

- **Tokyo's Nikkei 225:** essentially flat at 69,030.92 after recovering from an early 1.3% decline 

South Korea and Taiwan were closed for holidays, so the AI-heavy markets in those regions weren't trading .

**Europe: Solid Gains**

European stocks opened higher across the board :

- **Stoxx Europe 600:** up **0.99%** to 631.72

- **Germany's DAX:** up **1.2%**

- **UK's FTSE 100:** up **0.9%**

- **France's CAC 40:** up **0.9%**

- **Italy's FTSE MIB:** up **1.1%**

- **Spain's IBEX 35:** up **1.2%**

Barclays analysts noted that while "high interest rates and rising energy prices create an unfavorable backdrop for Europe," the selloff had made asset prices "more attractive" .

**Oil: Finally Cooling**

After spiking 4% on Thursday, crude prices pulled back Friday morning .

- **Brent crude:** fell **0.7%** to **$103.53 per barrel**

- **WTI crude:** traded around **$91 per barrel**, down from Thursday's close of $91.49 

The decline came as Trump's comments eased fears of an imminent military conflict with Iran. But analysts warned that the situation remains tense. Hurricane Isaias was set to make landfall in the Gulf of Mexico, taking **1.3 million barrels per day** of production offline — more than 60% of the region's output .

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## The Human Cost: What This Means for Real Americans

Let me bring this back to Rachel, the advisor in Denver.

She spent Thursday calming clients who were watching their tech-heavy portfolios take a hit. Some wanted to sell. Some wanted to know if this was the beginning of the end for the AI trade.

"I told them what I always tell them," Rachel said. "Don't panic. But don't ignore what's happening either."

Here's what's happening for real people:

**If You Own Tech Stocks**

The AI trade has been the engine of this market for two years. Thursday was a reminder that it's not invincible. When one company's revenue report can knock 3.4% off the semiconductor index, that's a sign of how much optimism is baked into prices.

**If You're Watching Mortgage Rates**

Treasury yields fell on Thursday, which is good news for mortgage rates. But the 10-year is still above 5.2%, and the 30-year is above 5.6%. Mortgage rates remain around 7% — near their highest in two years.

**If You're a Saver**

Higher yields mean better returns on savings accounts and CDs. But if yields start to fall, those rates will follow. Now might be a good time to lock in rates on cash you won't need for a while.

**If You're a Business Owner**

The uncertainty in the AI sector could ripple through the economy. If companies pull back on AI spending, it could hit the tech supply chain — and the workers who depend on it.

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## Frequently Asked Questions

**Q: Why did the Nasdaq fall on Thursday while the Dow rose?**

A: The Nasdaq was dragged down by a selloff in AI-related tech stocks after OpenAI disclosed revenue that was below expectations. The Dow, weighted toward industrial and financial stocks, was supported by a pullback in oil prices and a recovery in bond yields .

**Q: What was the OpenAI revenue report?**

A: The Financial Times reported that OpenAI's annualized revenue was approaching **$50 billion** at the end of September, well below the **$68 billion** figure that had been widely reported. The news triggered concerns about the sustainability of AI infrastructure spending .

**Q: Why did Treasury yields fall on Thursday?**

A: A strong **30-year bond auction** drew healthy demand, easing fears about the bond market. The 10-year yield cooled from 5.35% to 5.23%, and the 30-year fell from 5.7% to 5.6% .

**Q: Why did oil prices fall on Friday?**

A: President Trump said the U.S. was in "productive discussions" with Iran and would **not attack before the November 3 midterm elections**. That eased fears of supply disruptions and pushed crude prices lower .

**Q: Which global markets are higher on Friday?**

A: Asian markets were mostly higher, led by Hong Kong's Hang Seng (+1.7%). European markets opened solidly higher, with the Stoxx Europe 600 up nearly 1% .

**Q: What should investors watch next?**

A: Key items include: (1) the ongoing AI valuation debate, (2) Treasury yields and whether they stabilize, (3) oil prices and Middle East developments, and (4) the start of Q3 earnings season next week.

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## Conclusion: The Questions Remain

Here's what I keep coming back to when I think about Rachel and her clients.

The panic of Thursday faded by Friday morning. Markets stabilized. Oil pulled back. Bond yields eased. The world didn't end.

But the questions that triggered the selloff haven't gone away.

**Is the AI trade overvalued? Can the growth continue? What happens if it doesn't?**

Those are the questions investors will be wrestling with for months. Thursday was a warning shot — not a crash, but a reminder that the AI narrative depends on a constant stream of extraordinary numbers. When one of those numbers disappoints, the whole edifice shakes.

For now, the global rebound suggests investors aren't ready to abandon the trade. The earnings optimism for Q3 is real. The AI infrastructure spending is still happening. And the bond market, at least for now, is cooperating.

Rachel isn't celebrating. She's watching.

"The market is trying to figure out what it believes," she told me. "Thursday was a vote of no confidence. Friday is a vote of... maybe."

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## Disclaimer

**This article is for informational and educational purposes only. It does not constitute investment, financial, or trading advice. The author has no positions in any securities mentioned. Information presented here is based on publicly available sources and reported figures as of the publication date. The OpenAI revenue report cited is based on media reports and has not been officially confirmed by the company. Market conditions change rapidly. Investing involves risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions.**