Morning Roundup: U.S. bonds rose, while AI company stocks fell following the Democrats' victories

The yield on 10-year U.S. Treasury bonds fell by nearly 5 basis points amid a sell-off in AI company stocks following the Democrats’ success in the midterm elections. CoreWeave shares were down 7% at one point, while Nebius and Oracle shares were down 4% due to concerns that a Democratic victory in Texas would lead to restrictions on data center construction. Read about these and other topics in our roundup of key events as of the morning of November 4.

Yields on U.S. Treasury bonds fell amid a sell-off in stock index futures following the first results of the U.S. midterm congressional elections, according to CNBC. Specifically, the yield on 10-year Treasury bonds fell by nearly 5 basis points to 4.902%, while the yield on 2-year Treasury bonds dropped by 6 basis points to 4.55%. Investors began seeking safe-haven assets amid the prospect of major victories for the Democratic Party, the network explains.

Shares of companies involved in artificial intelligence came under pressure amid the Democrats’ gains in the U.S. midterm elections, according to CNBC. CoreWeave shares fell 7% in after-hours trading but later recouped most of their losses, while SpaceX shares dropped 6% and Nebius and Oracle shares fell 4%. The sell-off was exacerbated by the projected victory of Democrat Gina Inohosa in the Texas gubernatorial election, as Texas is one of the country’s largest technology hubs, the network notes.

Inohosa is calling for a moratorium on the construction of AI data centers. According to Wells Fargo estimates, Texas accounts for 27% of all planned data center capacity in the U.S. Bank of America strategist Michael Hartnett previously warned that a Democratic victory in the Senate and in Texas could trigger a stock market decline of more than 10% by the end of the year.

AMD shares rose 8% in after-hours trading following the release of quarterly earnings that beat Wall Street expectations, according to CNBC. The chipmaker’s third-quarter revenue increased by 45% to $13.38 billion, compared with a forecast of $13.09 billion. Adjusted earnings per share came in at $2.09, compared with an expected $1.95. Revenue from the data center division nearly doubled and accounted for 64% of the company’s total revenue, up from 47% a year earlier.

AMD CEO Lisa Su expects revenue from server processors to double by 2027, driven by growing demand for agent-based AI. The company forecasts fourth-quarter revenue of about $17 billion, while analysts had expected $16.2 billion.

Oracle has pulled out of a $7 billion deal with China’s Tencent to lease artificial intelligence chips, the Financial Times reported. The agreement called for the lease of 100,000 chips for a period of five years and was set to become Tencent’s largest overseas deal. According to the newspaper, U.S. officials expressed concerns to Oracle regarding the agreement.

Chinese AI developers are leasing computing power overseas to gain access to cutting-edge accelerators, including those from Nvidia, whose shipments to China are restricted by U.S. export controls, the newspaper explained.

The hackers who stole a record $6.3 billion from the Binance cryptocurrency exchange spent several weeks posing as recruiters and executives of a fictitious company to convince an engineer to install malware on his work computer, Yahoo Finance reports, citing the trading platform. According to Binance, the attackers conducted two rounds of a fake job interview, after which they asked the employee to download an infected file under the guise of a test assignment.

The attack had been in the works since June and affected the devices of several employees before the hackers gained access to the transaction verification systems. Binance temporarily suspended withdrawals but had restored operations by Sunday and reimbursed 98% of the affected assets. The company promised to cover all customer losses. Binance and the FBI link the attack to North Korea, which denies the allegations.

— Japan's broad-based Topix index fell 0.9%, while the Nikkei 225 fell 1.6%.

— Hong Kong's Hang Seng Index rose 1.1%, while mainland China's CSI 300 Index rose 2.1%.

— In South Korea, the KOSPI index rose 0.2%, and the KOSDAQ index rose 1.2%.

— Australia's S&P/ASX 200 was down 0.6%.

— Nasdaq 100 futures fell 0.3%, S&P 500 futures dropped 0.2%, and Dow Jones Industrial Average futures edged slightly higher.

This article was AI-translated and verified by a human editor