Overview:
Oil majors and technology stocks set conflicting market tones on Friday. Chevron's earnings surge contrasts with losses in U.S. equities after Amazon and Intel disappointed investors, triggering a broad retreat from artificial intelligence stocks. Meanwhile, the UAE signed its comprehensive economic partnership with the Democratic Republic of Congo into force, positioning the country for expanded African market access.
Details:
Chevron's third-quarter net income reached $9.9 billion, or $5.06 per share, compared with $3.5 billion, or $1.82 per share, in the same quarter last year. Adjusted earnings of $5.28 per share beat Wall Street expectations of $4.89 per share. U.S. refineries operated at near-full capacity, capitalizing on elevated diesel prices and strong product demand.
The Nasdaq Composite index fell 3% Friday, marking its worst single day since June. Amazon shares declined 5% after the company reported third-quarter revenue and profit below consensus forecasts and signaled capital expenditures of $220 billion for 2026. Intel shares dropped 25% in pre-market trading after issuing weak current-quarter guidance amid personal computer market softness. These results intensified investor concerns about whether massive artificial intelligence infrastructure spending will generate adequate returns.
The UAE-Congo economic partnership entered into force on Friday, eliminating tariffs on the vast majority of goods, harmonizing customs procedures, and removing unnecessary trade barriers. The agreement targets logistics, energy, and manufacturing sectors. The U.S. Treasury conducted its largest weekly debt issuance on record, borrowing $839 billion through bills and bonds, surpassing the prior record of $834 billion from the same week last year.
Outlook:
Investors are reassessing artificial intelligence capital spending viability as major technology company earnings reveal mounting cost pressures and slowing demand signals. Insurance costs for technology sector credit default swaps hit record highs, reflecting elevated default risk perceptions.
Abu Dhabi Petroleum Expo 2026 opens Monday with 1,800 speakers and 2,260 exhibiting companies, potentially drawing over 239,000 participants across four days, providing a venue for energy sector investment announcements and policy discussions.