Global stocks lose momentum as money shifts into commodities on AI bubble fears

On October 18, global markets showed a clear split between traditional risk assets and commodities. US equities, especially big tech and AI‑related names, came under pressure, with the Nasdaq falling more than 2%, while European and Japanese indices managed modest gains. Investors are increasingly questioning how long the artificial‑intelligence investment boom can run, just as geopolitical risks and higher energy costs cloud the macro outlook. This mix has made investors more cautious toward growth stocks and other high‑beta assets.

Commodities, by contrast, looked more resilient. Brent crude futures climbed toward 110 dollars per barrel, helped by worries over Middle East supply, and spot gold held in the 4,180‑dollar‑per‑ounce area despite recent volatility. Persistent inflation concerns and geopolitical tensions are reinforcing demand for tangible “real assets,” even as bond yields remain elevated.

In crypto, sentiment around major coins such as Bitcoin and Ethereum has softened but not collapsed. The same forces hitting tech stocks—uncertainty over the AI trade and the future path of interest rates—are capping upside, but there has been no broad capitulation. Until the next wave of corporate earnings and policy signals from the Federal Reserve, markets look set for range‑bound trading in both equities and digital assets, while a portion of capital continues to rotate into commodities as a perceived hedge.