Pendal: AI profitability concerns drive tech stock sell-off

• Australian inflation points to a likely RBA rate increase to 4.85% on Melbourne Cup Day, with markets pricing an approximately 81% probability.
• Cooling housing prices and softer consumer spending could restrain activity, despite persistent inflation pressures.
• AI investment faces greater scrutiny over returns and cash generation as weaker core businesses trigger sharp technology stock declines.
• The US 10-year yield fell 9 basis points to 4.91% as investors sought Treasuries amid the technology sell-off.
• Renewed conflict with Iran risks an energy shock that could reignite inflation concerns and pressure equity valuations.

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 November 02, 2026, and is solely responsible for the information contained therein.