Big Tech Earnings Face Decisive Test Amid AI Rout and $90 Oil

Wall Street futures edge higher to start a defining week for the AI trade, as Alphabet and Tesla earnings face intense scrutiny against a deepening semiconductor rout and escalating US-Iran military strikes that have pushed Brent crude above $90 per barrel. Goldman Sachs set a record equity-trading haul, while its analysts warned of an AI infrastructure debt tsunami, and US corporate bankruptcies hit a 16-year high.

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Big Tech earnings test and $90 oil set a volatile stage Futures rose in choppy trade Monday as investors braced for a pivotal earnings week. Alphabet and Tesla report Wednesday amid a deepening AI selloff and the U.S. bombing Iran for the ninth consecutive night, pushing Brent crude above $90. 1 2 3 4 5 6 7 8

Goldman Sachs posts record $7.4 billion equity trading haul The bank's equities revenue jumped 72% year-over-year, driven by record institutional activity during the AI and geopolitical volatility. It marks the firm's third straight quarter setting an all-time trading record. 9

Goldman warns of debt tsunami as AI bond issuance explodes The six largest AI infrastructure spenders have issued $244 billion in bonds this year alone, 14 times 2024 levels, as leverage doubles. Credit markets are signaling deepening skepticism that the capex splurge will generate adequate returns. 10

US corporate bankruptcies hit highest level in sixteen years A new report shows corporate distress is accelerating under elevated interest rates, with filings reaching levels not seen since the aftermath of the 2008 financial crisis. 11

Over half of private credit funds swing to a loss in Q1 A Reuters analysis of 53 business-development companies found 28 turned loss-making in Q1, up sharply from 12 a year earlier. The losses raise fresh questions about systemic risk in the $1.8 trillion asset class. 12