• Amazon shares slid amid investor alarm over massive AI capital spending.
  • India’s central bank held rates and struck a steady tone on growth.
  • Bitcoin and XRP staged a sharp rebound, lifting crypto sentiment.
  • Markets jittery as Big Tech spending fears and central-bank signals collide.

Main market moves

Markets finished the day on edge as headlines about Big Tech capital spending, central‑bank guidance and a sudden crypto rebound combined to rattle investors. The clearest hit came in equities: Amazon shares fell after reports that the company is planning heavy AI capital expenditures, prompting concern that profit margins and near‑term earnings could be pressured by a sustained spending cycle.

At the same time, India’s central bank opted to stand pat on interest rates and emphasized a steady tone on growth, a move that calmed some rate‑sensitive corners of the market but left others questioning how long monetary support will remain in place.

Crypto markets offered a counterpoint. Bitcoin and XRP both recorded sharp rebounds during the session, reviving risk appetite among digital‑asset traders after recent weakness. The bounce in major cryptos helped limit broader market losses, but traders flagged the episode as another reminder of persistent volatility.

Headline coverage also highlighted what was framed as Goldman’s pivot toward AI — a development markets are watching closely because any large reallocations by major banks and asset managers can amplify flows into tech and AI‑linked names.

Why this matters

Investors are responding to three overlapping drivers: (1) the prospect of large, sustained AI capital spending from Big Tech; (2) central‑bank messaging that balances inflation control with growth support; and (3) abrupt moves in crypto that can swing sentiment.

AI capex concerns are negative for near‑term stock performance because heavy investment typically translates into higher costs and longer timelines to material returns. For companies like Amazon, which are already trading on growth expectations, any sign of escalating spending invites scrutiny of margins and guidance.

Central banks remaining on hold reduces immediate rate‑shock risk, but a “steady” tone can be read two ways — as confidence in growth or as worry that support may be withdrawn if inflation reaccelerates. That ambiguity keeps markets sensitive to each data release and comment from policymakers.

Market reactions and what to watch next

  • Earnings and guidance from Big Tech: will companies justify higher capex with clearer paths to revenue from AI?
  • Central‑bank commentary and economic data: any hint of a policy shift could trigger renewed volatility.
  • Crypto flows: whether the Bitcoin/XRP rebound sustains or fades will influence risk sentiment.
  • Institutional moves: how major banks and asset managers, including those signaling an AI pivot, allocate capital will matter for sector leadership.

Markets remain fragile to headlines. Traders and investors should expect more choppy sessions as the implications of large AI investments, central‑bank posture and crypto volatility play out across asset classes. We will continue to monitor how these themes evolve and the market reaction to upcoming corporate updates and policy signals.

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