\u201cThe technology sector was hit hardest by the semiconductor and hardware stocks \u2013 we don\u2019t have a huge exposure here in New Zealand \u2013 and the pressure is starting to show on private credit.<\/p>\n
\u201cThere is a US$2 trillion [$3.5t] pre-commitment for data centres and the demand is not ebbing. But the credit market is creaking under the weight of the money needed to build them.<\/p>\n
\u201cIt seems that whoever wins the data centre race, who cares what you need to pay [for credit]. The market may reach the point of saying \u2018that\u2019s enough\u2019,\u201d Sullivan said. <\/p>\n
Chipmaker Nvidia was down 4.4% to US$212.21, Advanced Micro Devices fell 8.1% to US$507.93, Micron Technology declined 6.2% to US$856.49; infrastructure providers Nebius Group shed 7.23% to US$159.17 and CoreWeave, which operates 51 AI data centres, fell 10.06% to US$55.60.<\/p>\n
Meta Platforms (Facebook, Instagram, WhatsApp) was down 6.98% to US$648.86 after reporting a 26% increase in third-quarter revenue to US$64.6 billion, ahead of the market\u2019s estimate of US$63.7b. Meta narrowed its full-year 2026 capital expenditures to US$135b-$145b.<\/p>\n
Oil price surge<\/p>\n
Oil prices jumped following a report that the US and Israel had plans for renewed strikes against Iran after next month\u2019s midterm elections. <\/p>\n
Brent crude oil was trading at US$113.8 a barrel (at 5.45pm NZ time), nearing the high of US$114.44 on May 4 after the Middle East conflict broke out.<\/p>\n
Sullivan said the oil price rise will push up the inflation story, of course, and there\u2019s been a reprieve in bond yields (US 10 Year Treasury Note yield has fallen to 4.966%).<\/p>\n
He said oil flows out of the Persian Gulf in the past week have been 24 million barrels a day compared with 23.4 million barrels before the Iran war, and out of the Hormuz Strait 11.4 million barrels compared with 18 million before the war started.<\/p>\n
NZ trading<\/p>\n
At home, Fletcher Building declined 16c or 4.76% to $3.20; Infratil was down 12c to $12.15; Summerset shed 22c or 3.2% to $6.65; and Ebos Group dropped 39c or 1.85% to $20.65.<\/p>\n
Colonial Motor Company was down 14c or 1.93% to $7.11; Turners Automotive shed 14c or 1.87% to $7.35; Millennium & Copthorne Hotels NZ declined 8c or 2.61% to $2.99; Comvita was down 1.5c or 1.86% to 79c; and Rua Gold declined 10c or 5.92% to $1.59.<\/p>\n
Among the tech stocks, Serko decreased 4c or 3.92% to $1.01; Eroad was down 2.5c or 2.48% to 98.5c; and PaySauce shed 0.009c or 4.64% to 18.5c.<\/p>\n
Mainfreight gained $2 or 3.05% to $67.50; Vector increased 14c or 3.11% to $4.64; Chorus was up 15c or 1.87% to $8.18; and KMD Brands improved 5c or 2.73% to $1.88. <\/p>\n
Banking groups ANZ added $1.55 or 3.24% to $49.35; and Westpac collected $1.19 or 2.72% to $44.99.<\/p>\n
New listing Lodestone Energy added 2c to $2.30<\/a> \u2013 5c above its initial public offer price \u2013 and entrepreneur Guy Haddleton disclosed he held 7.174% of the solar farm developer. <\/p>\n ikeGPS, down 1c to $1, reported steady revenue of $12.7m and platform subscription revenue of $11m, up 22%, for the six months ending September, compared with the same period last year.<\/p>\n The software company is expecting subscription revenue growth of 30% for full-year 2027. It has cash of $27.4m and no debt. <\/p>\n Kiwi Property, up 1c to 89.56c, completed its $200m, seven-year green bond offer, carrying an interest rate of 5.62% a year. <\/p>\n