Weekly Market Wrap: Meta’s $145 billion AI bill hit chips — as Brent surged past $116

The week ended with an unusual split across global markets. Oil rose 6.2% to $116.72 a barrel, the Dow added 0.4%, and the Russell 2000 gained 2.0%, while the S&P 500 and Nasdaq both recorded a second consecutive weekly loss.

The source of the divide was not a collapse in technology earnings. It was the cost of producing them. Meta’s updated capital-expenditure plan of $135–145 billion for 2026, plus its decision to create a new non-voting share class, brought the funding demands of the AI race back into focus. Meta shares fell 9.4% for the week, and the Philadelphia Semiconductor Index fell 3.2% as investors reassessed how much spending, debt and dilution the industry can absorb.

Oil provided the other major market move. Brent reached its highest settlement since late April after Houthi attacks on Saudi Arabia, reported disruption risks near the Strait of Hormuz and an oil spill off the UAE raised fresh supply concerns.

The Australia 200 was almost unchanged for the week, but that quiet headline concealed a sharp local rotation. Financials gained 4.0%, led by the major banks, while materials fell 7.7% and information technology dropped 5.1%. BHP lost 8.3%, NextDC fell 38.9% after cutting guidance, and CBA rose 6.2%.

CFDs allow traders to take a long or short view on the US Tech 100, Australia 200 and Brent crude as the gap between technology, energy and local bank shares widens. Stop-loss and take-profit orders can help define risk around earnings, central-bank decisions and geopolitical headlines.

Open a Trading Account

      “Trade CFDs with an ASIC-regulated broker. Fast AUD funding via PayID. ”  

Meta’s quarterly revenue beat expectations and its fourth-quarter outlook remained strong. Investors focused instead on the cost of the company’s AI expansion.

The Facebook and Instagram owner narrowed its 2026 capital-expenditure forecast to $135–145 billion, up from $130–145 billion. It also approved a new publicly traded, non-voting Class C share, which gives Meta another route to raise capital, make acquisitions and compensate employees without weakening Mark Zuckerberg’s voting control.

The combination unsettled investors because Meta has historically been one of Silicon Valley’s most prolific cash generators. Its spending plan shows that even the largest platforms are committing huge sums to data centres, chips and computing infrastructure before the return on that investment is fully visible.

The market reaction spread quickly through the semiconductor and AI-infrastructure trade. Nvidia, AMD, Micron and CoreWeave all fell sharply on Thursday, while the Philadelphia Semiconductor Index lost 6.7% in a single session. The index had recovered from its earlier October sell-off, but Meta’s announcement revived concern that the industry is spending faster than it is monetising.

The numbers in circulation also need context. Meta did not announce $825 billion in fresh AI spending. Its current disclosed annual capital-expenditure guide is $135–145 billion. That is still an extraordinary figure, large enough to affect the valuation of the US Tech 100, the outlook for chip suppliers, and investors’ willingness to fund the next generation of AI infrastructure.

The US Tech 100 now faces a more demanding earnings test. Revenue growth alone may not be enough to support a rally if capital expenditure, free cash flow and financing needs deteriorate at the same time. Microsoft, Alphabet, Meta, Amazon and Apple report over the coming week, giving the market its clearest read yet on whether AI spending is converting into commercial returns.

Brent crude rose for a third straight week and settled at $116.72 a barrel, its highest level in almost six months. The move reflected concern over Houthi attacks on Saudi Arabia, the threat of further disruption around the Strait of Hormuz, an oil spill off the UAE coast and reduced production in Libya.

Oil markets have become particularly sensitive because shipping flows have continued despite the conflict. Export volumes are not the same as normal trade conditions: longer routes, higher insurance costs and security risk all increase the price needed to keep supply moving.

Higher crude prices have created a clear divide across equities. Energy producers benefit directly when realised oil prices rise, while airlines, transport companies, retailers and other fuel-intensive businesses face higher costs. Technology shares also feel the effect because a sustained oil rally can lift inflation expectations and complicate the Federal Reserve’s next decision.

Brent’s move above $116 is therefore more than an energy-sector story. It has become one of the main variables behind global equity valuations. A further escalation around Saudi infrastructure or shipping routes could keep the risk premium elevated. Evidence that supply is moving normally, strategic-reserve releases are helping, or diplomatic tensions are easing could unwind part of the rally quickly.

The Australia 200’s 0.1% weekly fall looked relatively calm beside the volatility in US technology shares. The local sector moves were anything but calm.

Financials rose 4.0%, with CBA up 6.2%, NAB up 5.1%, Westpac up 4.7% and ANZ up 3.0%. Investors favoured the banks’ established earnings, dividends and domestic exposure while concerns grew over AI spending and the outlook for global growth.

Materials went in the opposite direction, falling 7.7% for the week. BHP declined 8.3%, Rio Tinto fell 5.6%, and Fortescue lost 6.1%. BHP’s September-quarter copper output fell 19%, while Fortescue reported a build-up of iron ore awaiting agreement on pricing with China’s state-backed buyer.

Australian technology also felt the global repricing. NextDC dropped 38.9% after cutting guidance, exposing the same concern seen in the US: data-centre projects are expensive, capital intensive and vulnerable when forecasts fail to match expectations. WiseTech Global rose 6.7%, showing that company-specific developments can still outweigh broad sector pressure, but the information-technology sector fell 5.1% overall.

The result was a sharply divided Australia 200. Banks and defensives offered one route through the volatility; miners, data-centre companies and gold producers absorbed the selling pressure. This week’s move in Brent adds another layer. Oil can support Australian energy producers, but it also increases the risk that inflation stays uncomfortable for the RBA and domestic consumers.

US Tech 100: Can Big Tech show where the AI spending goes?

Microsoft, Alphabet and Meta report on Wednesday, followed by Amazon and Apple on Thursday. Their earnings will cover the full AI chain: cloud computing, search, advertising, chips, data centres and consumer devices.

Strong revenue growth will help, but investors will also examine capital-expenditure guidance, free cash flow and management comments on when AI products begin producing a return. Spending forecasts that move higher without a clear revenue path could keep pressure on the index. Evidence that enterprise demand and cloud revenue are accelerating could support a recovery after October’s sell-off.

Brent crude: Can the risk premium keep growing?

Brent enters the week at a six-month high after adding more than 6%. Shipping security, Saudi energy infrastructure, Libyan output and any move to release strategic reserves will drive the next leg.

A widening conflict or further disruption to supply routes could push Brent above recent highs. A credible improvement in shipping conditions would leave the market exposed to a sharp reversal after three straight weekly gains.

Australia 200: Can the banks keep offsetting the miners?

The local index has been pulled in opposite directions by a banking rally and heavy materials losses. The next move will depend on whether financials can keep attracting buyers while iron ore, copper and China-linked shares remain weak.

A softer RBA tone and more stable commodity prices could broaden support across the index. Higher oil prices feeding into inflation expectations, or a further fall in major miners, could leave the Australia 200 reliant on a narrow group of banks and defensive shares.

This week’s market action made broad index exposure less straightforward. The US Tech 100 moved on AI-financing concerns, Brent climbed on geopolitical risk and the Australia 200 split sharply between banks, resources and technology.

Mitrade gives traders access to global indices, commodities, forex and selected shares from one platform. CFDs can be used to take a long position if a catalyst supports a market or a short position if it weakens, with stop-loss and take-profit orders available to help manage risk.

Start trading global markets in three simple steps