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South Korea’s Elice Group plunged 32% in its market debut, renewing concerns about AI valuations and infrastructure spending.
Oil prices retreated from five-month highs as traders weighed Middle East tensions and diplomatic efforts.
General Motors shares fell despite better-than-expected quarterly results, while GE Aerospace raised its 2026 profit forecast on strong demand for engine repairs and spare parts.
South Korea’s Elice shares plunge 32% in debut
Shares of South Korean AI cloud services provider Elice Group fell 32% on Tuesday, marking the worst debut in the country for a company that raised more than $100 million in an initial public offering, according to Dealogic data.
Elice raised 201.1 billion won ($150 million) in its IPO, with plans to use most of the proceeds to develop portable modular data centres and related infrastructure.
The stock closed at 60,500 won, below its IPO price of 90,500 won, valuing the company at approximately 674 billion won.
The debut intensified concerns about whether heavy investment in AI infrastructure can generate sufficient returns.
Other AI-linked stocks, including CoreWeave and Nebius Group, also fell initially on Tuesday, although recovered later in the session.
Investors are increasingly scrutinising customer contracts, committed revenue and profitability as AI infrastructure spending rises.
Recent setbacks for planned listings by Australia’s Firmus, Blackstone-backed AirTrunk and SoftBank’s SB Energy have added to concerns about investor appetite.
Oil prices retreat from five-month highs
Oil prices fell on Tuesday after reaching five-month highs as traders assessed diplomatic efforts involving Iran and Pakistan against continuing security risks in the Middle East.
Brent crude futures declined 0.27% to $109.25 a barrel, after reaching $111.99 earlier in the session.
US West Texas Intermediate crude futures for November delivery fell 2.48% to $101.09.
Iranian President Masoud Pezeshkian discussed mediation efforts and regional developments with Pakistan’s army chief, Field Marshal Asim Munir, in Tehran, according to Iran’s Nournews.
However, continued Houthi attacks on Saudi infrastructure and reports of attacks on at least 18 vessels over two weeks kept supply concerns elevated.
Saudi authorities had not immediately confirmed the Houthi claims, and Reuters could not independently verify them.
ING analysts said oil prices remained supported by a significant risk premium amid the volatile situation.
General Motors shares fall despite earnings beat
General Motors shares dropped more than 7% on Tuesday, despite the automaker reporting stronger-than-expected third-quarter earnings and revenue.
Adjusted earnings per share reached $3.70, beating analysts’ estimate of $3.63, while revenue increased nearly 3% year over year to $50 billion.
GM narrowed its 2026 adjusted earnings before interest and taxes forecast to $14.5 billion-$15.5 billion, compared with the previous range of $14 billion-$16 billion.
It raised its adjusted automotive free cash flow outlook to $11.5 billion-$12.5 billion.
However, the company expects commodity inflation of approximately $2 billion, including higher logistics and DRAM chip costs.
GM also announced a multiyear $20 billion share repurchase programme.
GE Aerospace raises 2026 profit forecast
GE Aerospace raised its 2026 adjusted earnings forecast to $8-$8.10 per share from $7.65-$7.85, supported by demand for aircraft engine repairs and spare parts.
Third-quarter revenue rose 16% to $14.12 billion, while adjusted earnings reached $2.25 per share, above analysts’ expectations of $2.01. Commercial engines and services revenue increased 21%.
Despite the earnings beat and improved outlook, GE Aerospace shares fell more than 3% in trading. Investors weighed inflation, weaker cash flow, and rising oil prices.
Free cash flow declined 14% to $2 billion, while margins in the commercial engines and services segment fell 10 basis points.
The company also warned that supply chain constraints could continue to affect production and deliveries.
Higher fuel costs could prompt airlines to reduce flights, potentially weakening demand for maintenance and replacement parts.
However, GE Aerospace’s commercial services backlog of more than $170 billion provides support for its longer-term growth outlook.
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