Markets continued to see sell-offs for the fourth consecutive session due to investors’ anxiety over soaring AI companies’ valuations and the instability of the artificial intelligence boom. Sundar Pichai, CEO of Google parent company Alphabet, also warned in an interview with the BBC that “no company is going to be immune” to the impacts of the AI bubble bursting. He described the current AI investment wave as "extraordinary" while acknowledging that it has an “element of irrationality.”

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US markets saw steep declines: The S&P 500 closed down 0.8%, while the Dow Jones fell 1.1%, and the tech-heavy Nasdaq shed 1.2% during yesterday’s trade. Also driving the fall is speculation over US interest rates not getting cut as “quickly as hoped,” The Guardian reports, citing commentary from policymakers. Nervousness over tech giant Nvidia’s earnings and worry around massive debt over AI infrastructure are also adding to market volatility.

Could Nvidia’s earnings offer some comfort? US chipmaker Nvidia will release its quarterly results later today. Investors will also be on the lookout for September’s US jobs report, which will see the light tomorrow after government-shutdown related delays.

Behind the numbers: “A selloff in the world’s largest technology companies drove stocks to their longest slide since August, underscoring the US market’s narrow reliance on a handful of growth giants. Wall Street has grown increasingly concerned that AI isn’t yet generating enough revenue or profits to justify the massive spending on infrastructure,” Bloomberg wrote.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning as investors assess the fallout from the sell-off. Japan’s Nikkei, the Shanghai Composite, and the Hang Seng are all in the green, looking at moderate gains, while the Kospi is down 0.2%.

EGX30

40,501

-1.4% (YTD: +36.2%)

USD (CBE)

Buy 47.11

Sell 47.24

USD (CIB)

Buy 47.13

Sell 47.23

Interest rates (CBE)

21.00% deposit

22.00% lending

Tadawul

11,099

+0.4% (YTD: -7.8%)

ADX

9,882

-0.3% (YTD: +4.9%)

DFM

5,899

-1.0% (YTD: +14.3%)

S&P 500

6,617

-0.8% (YTD: +12.5%)

FTSE 100

9,552

-1.3% (YTD: +16.9%)

Euro Stoxx 50

5,535

-1.9% (YTD: +13.1%)

Brent crude

USD 64.56

-0.5%

Natural gas (Nymex)

USD 4.38

+0.2%

Gold

USD 4,061

-0.2%

BTC

USD 92,590

+0.4% (YTD: -1.1%)

S&P Egypt Sovereign Bond Index

964.52

+0.2% (YTD: +24.0%)

S&P MENA Bond & Sukuk

152.03

+0.1% (YTD: +8.6%)

VIX (Volatility Index)

24.69

+10.3% (YTD: +42.3%)

THE CLOSING BELL-

The EGX30 fell 1.4% at yesterday’s close on turnover of EGP 5.3 bn (8.9% above the 90-day average). International investors were the sole net sellers. The index is up 36.2% YTD.

In the green: Juhayna (+2.3%), Abu Qir Fertilizers (+1.2%), and Ibnsina Pharma (+0.9%).

In the red: GB Corp (-4.1%), Misr Cement (-3.8%), and Emaar Misr (-3.6%).

CORPORATE ACTIONS-

CIRA Education’s board approved a EGP 200 mn dividend payout for the fiscal year that ended August 2025, equivalent to EGP 0.34 per share, according to an EGX disclosure (pdf). The proposal is pending shareholders’ approval.

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