Oil and bonds diverge
The moves follow sharp declines in major AI-related stocks, including Google. CNBC's report suggests that weakness in those shares could point to a broader economic slowdown and disinflation, with implications for bond markets and investment strategies.
An Oct. 26, 2026, opinion column in The Edge Malaysia put the oil rally at 10% for the preceding week, when U.S. crude futures reached a six-month high above $110 a barrel.
The column also reported that the U.S. 10-year Treasury yield slipped below 5% in late October, its first move below that level in more than a month. Earlier in October, it had reached 5.36%. Its lowest daily close of 2026 was 3.96% on Feb. 27, one day before the U.S. and Israel attacked Iran.
Inflation concerns persist
The Edge Malaysia column said the AI selloff had also revived concerns about stagflation. One-year market-based U.S. inflation expectations rose to 2.80%, a level last seen in June.
The column described producer prices as rising at a pace unmatched in four years. Consumer price inflation, meanwhile, had remained above the Federal Reserve's 2% target for nearly six years.
Google's decline and the cost of AI spending
Pluang listed Google (GOOG) at $278.22 as of 23:11 WIB on Nov. 1, 2026, down 1.45% for the day. The price was near its 52-week low of $273.14 and far below its 52-week high of $399.06. Buying nevertheless accounted for 81% of orders among Pluang users, compared with 19% for selling.
Related coverage on Pluang described several pressures behind Alphabet's selloff following its fiscal third-quarter 2026 results: paper losses on SPCX equity, a $5.2 billion fine, hardware inventory problems and substantial AI spending that weighed on free cash flow.
One summary reported a 12% share-price decline after a miss on non-operating earnings-per-share expectations and slower Search growth. Another put the decline at 12.3% and cited Search revenue and operating income that fell short of expectations. The coverage also highlighted a doubling of Cloud revenue, strong Cloud operating margins and a $561 billion backlog supporting future growth. Analysts remained bullish despite the near-term financial pressures.
The spending concerns extend beyond Alphabet. Another Pluang summary reported that Microsoft, Alphabet, Amazon, Meta and Oracle together spent $556.9 billion on AI infrastructure during the first nine months of 2026, more than their combined $542.9 billion in operating cash flow.
