Markets are reassessing whether the AI boom can generate returns sufficient to justify the scale of spending, as investors question whether roughly $900 billion in AI outlays by major tech firms over the past two years can be covered by future profits. Anthropic is preparing for an imminent IPO to raise additional billions to fund costly research and development and data-center buildouts. Analysts say the ability of AI-linked valuations to keep supporting global equity indices could be tested if profit delivery is delayed while valuations stay elevated.

Brent crude jumped 2.8% to $107.55 a barrel after Saudi Arabia shut a key oil pipeline following drone attacks. A planned meeting between Iran and Gulf states was postponed, adding to concerns about potential supply disruptions in the Middle East. The moves came as markets weighed the risk of renewed pressure on energy prices.

US inflation ran hotter than expected in August, and producer prices posted their biggest month-on-month rise since May, reinforcing expectations for a Federal Reserve rate hike next week. The 10-year US Treasury yield rose to a fresh three-year high above 4.9% even after a bond buyback program was rolled out. Across Asia, economies are facing renewed inflation pressure and tighter policy constraints after oil climbed back above $100.

OpenAI CEO Sam Altman said the company’s long-anticipated IPO is likely to be pushed back beyond 2026, while endorsing calls to slow the pace of AI development amid safety concerns. Anthropic CEO Dario Amodei has outlined a three-step safety plan that includes embedded third-party evaluators, shared safety standards and limits on unchecked AI progress. Both executives said the industry and governments need to work together to address risks around control of advanced AI systems and alignment with human values.

U.S. consumer prices rose faster in August, with core inflation recording its largest increase in four months as higher energy costs added to price pressures. Rate-hike expectations strengthened, with FedWatch showing the probability rising to 87%. Oil climbed back above $100 a barrel and motor fuels including diesel jumped 9.6% over the week, pushing up inflation expectations. The Federal Reserve faces a more urgent policy trade-off between restoring price stability and supporting economic growth.

U.S. stocks finished higher on Friday after an acceleration in consumer prices reinforced expectations that the Federal Reserve will raise interest rates at its policy meeting on Wednesday. The Dow, S&P 500 and Nasdaq all advanced, while Dell jumped to a record high. Rate futures imply a nearly 90% chance of a hike, according to the CME FedWatch tool. Oil prices fell on the day but were still up around 9% for the week amid concerns about Middle East supply disruptions.

The International Energy Agency sharply lowered its forecast for global oil demand this year, citing an escalation of the war in the Middle East and surging energy prices. The agency said Ukrainian strikes on Russian refineries have also pushed fuel prices higher, with U.S. diesel prices topping $200/bbl, up 94%, and Europe and Asia close behind. The IEA now expects 2026 consumption to fall by 2.5 million barrels per day, far more than its previous estimate.

Regulatory filings show GameStop CEO and chairman Ryan Cohen bought 1 million shares of the company in the open market. After the disclosure, the stock extended its gains in after-hours trading, rising about 4%.

India’s gold ETFs recorded net inflows of Rs 2,596 crore in August, up 67% from Rs 1,558 crore in July and 19% higher than August 2025. Gold prices rose around 15% from July to August, supported by geopolitical uncertainty, a weaker dollar and falling Treasury yields. Analysts say investors should view gold mainly as a diversification tool and keep allocations appropriate, rather than chasing recent gains.