Global Shares Tumble Amid AI Costs and Economic Puzzles

Global shares fell as Meta Platforms and Microsoft caution on AI spending, amid strong U.S. economic growth. Investors worry about tech investment returns, while the dollar fluctuates with international rate decisions and the U.S. election. All eyes await non-farm payrolls and the Fed's upcoming policy decisions.

Shares worldwide took a hit on Thursday as both Facebook owner Meta Platforms and Microsoft warned of increased expenses related to artificial intelligence. This prompted investor concern about delayed returns from hefty AI spending, despite evidence of robust growth in the U.S. economy that continues to bolster the dollar.

Meanwhile, the dollar retreated from a three-month high against the yen following the Bank of Japan's decision to hold interest rates steady. However, a hawkish tone has led some experts to forecast a potential rate hike in December. Investors are cautiously awaiting key events, including U.S. non-farm payrolls data and the Federal Reserve's policy decision.

In the U.S., third-quarter data revealed an annualized economic growth rate of 2.8%, beating expectations for the eighth time in nine quarters, yet futures for both the S&P 500 and Nasdaq indicated potential declines. Tech stocks fell during premarket trading with Microsoft and Meta leading the dip.

(With inputs from agencies.)