MARKETS IN A NUTSHELL — FOR OCTOBER 2026

The AI bill is falling due

America’s technology giants have spent years returning cash to shareholders. Increasingly, they are asking for it back. October began with US shares setting fresh records as AI enthusiasm lifted earnings expectations. But a slew of earnings reports then revealed just how much cash the AI expansion is consuming. By Halloween, some of the market’s most dependable profit machines were giving investors a fright.

Meta announced plans to raise $95 billion in the same week that Anthropic published its long-awaited stock-market prospectus, reportedly targeting a $1.5 trillion valuation. Reports that Anthropic might receive a junk credit rating soon raised doubts about the cost of financing its vast computing commitments, spooking tech investors.

The strain is also showing up in the established technology giants. Google’s growing expenditure on AI infrastructure has left its free cash flow deeply negative. Its shares, along with those of Meta and Nvidia, fell sharply as investors questioned whether AI revenues would justify the spending. Even the industry’s most profitable businesses face growing demands on their cash.

Across developed markets, gains in other sectors — including energy and consumer staples — cushioned the technology sell-off. However, emerging markets suffered heavy losses. South Korea’s chipmakers fell precipitously, hit by doubts about AI spending. Chinese shares also fell steeply: booming exports offered little comfort as weak household spending and Beijing’s reluctance to stimulate demand weighed on shares.

AI investment and resilient consumer spending helped America’s economy to grow faster in the third quarter. However, crude oil rose by double digits again in October as shipping disruptions and fears of renewed escalation in the Iran war outweighed recovering Gulf exports. Higher fuel costs are squeezing household budgets and business margins worldwide. In France, cost-of-living protests have turned violent.

Foord’s global funds had limited exposure to several of the hardest-hit technology shares, although Chinese investments weighed on returns. The Foord Asia ex-Japan Fund declined but ranked near the top of its peer group, helped by its lower exposure to Korean shares.