Big Banks Open Earnings Season as Chip Selloff Deepens on AI Trade Concerns
Big U.S. banks opened earnings season amid a chip selloff on AI-trade concerns. New York Fed's Williams still sees one more hike this year.
Bloomberg Businessweek Daily reported that a closely watched gauge of semiconductor powerhouses extended its plunge from a June record. Concerns linked to artificial intelligence propagated across sectors, adding pressure to equities as investors assessed whether the AI trade can sustain its momentum.
In fixed income, bond traders were eclipsed by equities in a Wall Street reversal. Fixed-income desks struggled in the third quarter, while their rivals in equities seized a rare opening to outshine their market brethren, Bloomberg reported. Herman Chan of Bloomberg Intelligence broke down the day's big bank earnings. KKR Partner Alisa Wood discussed the firm's strategy and the current exit environment with Bloomberg's Dani Burger.
Bloomberg's Mike McKee joined with reaction to the day's Fed speak after Williams' comments. The New York Fed president's view that one more rate hike remains appropriate this year kept attention on monetary policy even as bank earnings and AI-related stock moves dominated market discussion.
The Close, a Bloomberg program, provided news and analysis leading up to and after the closing bell on Wall Street. Its guests included Wells Fargo CFO Mike Santomassimo, golfer Rory McIlroy, Jefferies Equity Research Analyst David Chiaverini, PSP Growth Managing Director and Head of Venture Momei Qu, Applied Materials CEO and President Gary Dickerson, RBC Capital Markets Head of Derivatives Strategy Amy Wu Silverman, Advisors Capital Management Co-Founder and CIO Chuck Lieberman, Brookfield Asset Management CEO Connor Teskey, Blackstone President and COO Jonathan Gray, Vista Equity Partners Founder, Chairman and CEO Robert Smith, and Barclays Senior Equity Analyst Jason Goldberg.
Separately, Samsara CEO Sanjit Biswas discussed the launch of the company's Agent Studio and how AI agents are moving into the physical world, according to Bloomberg Businessweek Daily. The discussion added a corporate and technology dimension to a day otherwise focused on bank earnings, chip stocks and interest-rate expectations.