Big tech companies pumped a staggering $50.6 billion into AI infrastructure last quarter, yet their combined cloud revenue of $63 billion raises questions about the return on investment. While cloud growth looks promising at companies like Google, which saw a 35% growth, the massive spending on data centres and AI development continues to outpace the actual money coming in. Microsoft, Amazon, and Meta are doubling down on their AI investments despite the uncertain payoff, with Meta alone spending $9.2 billion on infrastructure in just three months. Though Microsoft trumpets that its AI products will bring in $10 billion annually, that figure pales next to the enormous costs these tech giants are racking up in their AI arms race, with OpenAI expected to burn a total of $5 billion this year. The market seems to share these concerns as investors grapple with whether the AI gold rush will ever justify its cost.

EQUITY
Thursday marked the biggest single day loss since early September, led by Microsoft, Meta, and Nvidia to close the month at a loss not seen since April 2024. Although companies beat their earnings targets, it scared investors with massive costs needed to build their AI capabilities, with Microsoft specifically noting slower growth in its Azure cloud business. Looking ahead, investors seem caught between AI's long-term promise and its short-term costs, raising questions about how patient shareholders will be.

GOLD

Gold prices dumped, a long overdue pullback from their all-time high, as traders cashed in short of $3000 target after new inflation numbers came in slightly better than last month. Still, gold has been on a tear this year, climbing 35% as Middle East tensions linger and the ongoing U.S. presidential election heightened volatility. Friday's jobs report could shake things up further, with traders keeping a close eye on employment numbers that could affect the Fed's decision.

OIL
Oil prices are set to recover from last week's slump, having bounced back to a high of $70 a barrel today for WTI and $76 for Brent as reports surfaced that Iran might be launching massive strikes against Israel from Iraq, bringing the Middle East conflict back into focus. The market had also gotten a boost from whispers that OPEC+ could hold off on its planned December production increase, with sources saying the decision might come as early as next week.

CURRENCY

October marked the dollar's biggest monthly gain since September 2022, as investors scaled back their expectations for aggressive Fed rate cuts. Meanwhile, the Japanese yen is boosted by the Bank of Japan, which hinted at potential future rate hikes, though it kept rates unchanged for now. The euro has also shown strength lately, climbing to a two-week high against the dollar after inflation in the eurozone came in hotter than expected.