Pendal: AI funding concerns weigh on Australian tech stocks

• Australian equities gained despite an AI-linked selloff, with the S&P/ASX 300 rising 0.9% last week.
• Large caps rose 1.5%, while the S&P/ASX Small Ordinaries fell 2.8%, highlighting sharp performance divergence.
• Investors rotated into financials, healthcare and consumer staples as concerns over capital availability and financing costs pressured AI-linked stocks.
• CoreWeave shares fell around 25%; its 2031 bond yield to maturity rose above 15%, underscoring funding stress.
• Weaker Australian employment data pushed back rate-hike expectations, with markets pricing a 22% chance of an increase at the Melbourne Cup meeting.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Pendal Group Limited published the original content used to generate this news brief on October 19, 2026, and is solely responsible for the information contained therein.