The S&P 500 Index ($SPX) (SPY) fell -0.30%, the Dow Jones Industrial Average ($DOWI) (DIA) fell -0.25%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell -1.38%. December E-mini S&P futures (ESZ26) fell -0.87%, and December E-mini Nasdaq futures (NQZ26) fell -2.67%.
US stocks traded lower on Thursday as Alphabet slumped more than -13% on disappointing sales in its earnings report released Wednesday afternoon. Also, Samsung (005930) slid nearly -4% in South Korean trading on disappointment about its quarterly earnings report, which was negative for US chip stocks since Samsung is one of the world’s largest chipmakers. In another disappointment, Caterpillar fell more than -9% after disappointing Q4 sales guidance.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Amazon and Intel fell sharply in extended trading late Thursday afternoon after disappointing earnings announcements.
Thursday’s US PCE deflator was exactly in line with market expectations. The Sep PCE price index rose +0.5% m/m and +3.6% y/y, while the Sep core price index rose +0.3% m/m and +3.1% y/y. The core PCE price index in September rose to +3.1% y/y from +3.0% in August and was just below May’s 2.5-year high of +3.2%. The core PCE price index has been consistently above the Fed’s +2% inflation target for the past five years.
Sep personal income rose +0.2% m/m, slightly below market expectations of +0.3% m/m. Sep personal spending rose +0.5% m/m, slightly below market expectations of +0.6%.
Weekly initial unemployment claims fell -1,000 to 194,000, showing a slightly stronger labor market than market expectations of 198,000. Weekly continuing unemployment claims fell to 1.701 million from a revised 1.722 million, showing a slightly stronger labor market than market expectations of 1.720 million.
US Q3 GDP (annualized q/q) rose to +3.4% from +2.2% in Q2 and was stronger than market expectations of +3.2%. Q3 personal consumption was unchanged at a strong +3.8%, stronger than market expectations of +3.4%.
The FOMC at its 2-day meeting that ended Wednesday left its federal funds rate target unchanged at 3.75-4.00%, as the market expected. The markets are now pricing in a 79% chance of a rate hike at the FOMC’s next meeting on December 8-9.
Dec WTI crude oil prices fell -0.5% on Thursday as the market assessed mediation efforts to avert a possible US military attack on Iran after Tuesday’s US mid-term elections. Axios reported Wednesday that Qatar is leading behind-the-scenes mediation efforts, supported by Pakistan, Saudi Arabia, Egypt, and Türkiye. Also, the Wall Street Journal reported that US Vice President Vance sent a letter to Mohsen Rezaee, secretary of Iran’s top security body, to see if a framework for negotiations exists. Iran said it has not yet replied to the letter.
Despite mediation efforts, the Wall Street Journal reported Tuesday that the US has told several Persian Gulf countries to be prepared for a short, intense military campaign against Iran. The WSJ said President Trump hasn’t yet decided to proceed with the attack but is leaning toward an attack after next Tuesday’s mid-term elections.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +26% from a year earlier, up from a July estimate of 22%. As of Wednesday, 225 of the S&P 500 companies have reported results, with 80% beating estimates.
Overseas stock markets closed mixed. The Euro Stoxx 50 closed up +0.64%. China’s Shanghai Composite closed down -0.82%. Japan's Nikkei-225 Stock Average closed up +1.10%.
Interest Rates
December 10-year T-notes (ZNZ6) rose +15.5 ticks. The 10-year T-note yield fell -5.2 bp to 4.966%. T-notes received a boost from safe-haven demand amid the stock sell-off. T-note prices also received a boost from the sell-off in crude oil prices, along with the -2.5 bp decline in the 10-year breakeven inflation expectations rate to 2.358%.
T-note prices saw some downward pressure from the stronger-than-expected US GDP report and supply overhang, as the Treasury sold $44 billion of 7-year T-notes.
European government bond yields declined. The 10-year German bund yield fell -1.6 bp to 3.355%. The 10-year UK gilt yield fell -2.8 bp to 5.294%.
The ECB at its meeting Thursday left its deposit rate unchanged at 2.50%, as the market expected. Separately, ECB President Christine Lagarde announced she will step down on February 7, 2027, paving the way for a successor to be named by year-end. The markets are now pricing in an 84% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
The Magnificent Seven closed mostly lower, with Alphabet (GOOGL) plunging more than -13% after reporting disappointing search and advertising sales, sectors that are threatened by AI. Only Apple and Meta closed higher.
Microsoft (MSFT) fell -0.2% even though its after-market earnings report on Wednesday showed solid cloud sales. Microsoft saw strong demand for its $25 billion bond offering on Thursday, with orders totaling $115 billion. The strong demand for Microsoft’s bond offering reduced concern about whether investor demand is evaporating for hyperscaler and AI-related debt.
Amazon.com (AMZN) fell more than -4% ahead of its earnings report after Thursday’s close. The results were bearish, with Amazon.com down another -7% in after-hours trading. Amazon’s web services sales were slightly higher than expected, but overall revenue was less than expected. The market was disappointed with Q4 operating income guidance of $28.5-33.5 billion, with a midpoint being the consensus of $32.99 billion. The market was also concerned that Amazon spent more than $77 billion on property and equipment in Q3 in an effort to build data centers and pursue AI services.
The iShares Semiconductor ETF (SOXX) fell -1.6%. Marvell (MRVL) fell more than -13% after Bloomberg reported the chip company is near a deal to buy optical equipment manufacturer Lumentum Holdings (LITE), which rose +0.6% after the news. Micron Technology (MU) fell more than -4%. Arm Holdings (ARM) and Intel (INTC) fell more than -3%.
Software stocks fell after ServiceNow (NOW) and Fortinet (FTNT) both fell more than -20% on disappointing earnings reports and continued concern about whether software companies will be able to survive AI. Atlassian (TEAM) fell more than -7%. Salesforce (CRM), Datadog (DDOG), and Workday (WDAY) fell more than -4%.
Bitcoin (^BTCUSD) fell more than -1%, undercutting supporting crypto stocks. Iren (IREN) fell more than -8%. Galaxy Digital (GLXY) and Riot Platforms (RIOT) fell about -5%.
Caterpillar (CAT) fell more than -9% despite a slight beat in earnings and sales, as its Q4 sales guidance disappointed.
Doordash (DASH) rallied more than +6% after an earnings beat and news that it will seek to buy Instacart parent Maplebear (CART) for $17 billion. CART closed down -2.2% on the day.
Earnings Reports (10/30/2026)
Colgate-Palmolive Co (CL), Chevron Corp (CVX), AbbVie Inc (ABBV), Federal Realty Investment Trus (FRT), Regeneron Pharmaceuticals Inc (REGN), Cboe Global Markets Inc (CBOE), Kenvue Inc (KVUE), OneMain Holdings Inc (OMF), Church & Dwight Co Inc (CHD), General Dynamics Corp (GD), Dominion Energy Inc (D), LyondellBasell Industries NV (LYB), Exelon Corp (EXC), RBC Bearings Inc (RBC), nVent Electric PLC (NVT), AutoNation Inc (AN), Gates Industrial Corp Ltd (GTES), Lear Corp (LEA), ExxonMobil Holdings Corp (XOM), CCC Intelligent Solutions Hold (CCC), Madison Square Garden Sports C (MSGS), TFS Financial Corp (TFSL), Almonty Industries Inc (ALM).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The Collapse of Brazil’s Bolsonaro Bet and Interest Rates vs. Ag Markets Billionaire Investor Jeffrey Gundlach Warns the Fed Is ‘Falling Behind the Curve.’ The Bond Market Seems to Agree. Christine Lagarde Will Leave the ECB 9 Months Early — But the Real Crisis Is What Her Successor Inherits Fed Chair Warsh Refuses to Call Financial Conditions 'Tight' — and That Single Phrase May Have Just Locked In a December Rate Hike