Key facts
- Oil prices and French bond yields surged, contributing to a risk-off sentiment.
- Meta Platforms reported its first quarterly cash burn in over a decade.
- Tesla's 2030 capex and car sales targets missed forecasts.
Global markets are experiencing a risk-off sentiment, with stock index futures sharply down and Treasury yields falling. This sentiment is driven by a surge in Brent crude oil prices to over $112 per barrel and a widening risk premium on French debt, which climbed above 5% and 165 basis points versus German debt. Despite diplomatic efforts, ongoing attacks in the Middle East and Ukraine have contributed to the market's unease. Big Tech earnings have been a mixed bag; Meta Platforms reported a $2 billion negative free cash flow for the third quarter, causing its stock to reverse early gains and fall 3%. Tesla shares also slipped 5% after its long-term capex and sales targets fell short of expectations. However, AI server maker Super Micro Computer initially soothed jitters with a strong revenue beat, though its stock later gave back half of its gains.