December Nasdaq 100 E-Mini futures (NQZ26) are down -2.43% this morning as disappointing earnings from Amazon and Intel intensified a rotation out of the technology sector.
Amazon.com (AMZN) slumped more than -7% in pre-market trading after the e-commerce giant reported weaker-than-expected Q3 results. The company’s core e-commerce business grew at its slowest pace in three years, while capital expenditures came in well above expectations. Amazon also issued disappointing Q4 revenue guidance. Meanwhile, Intel (INTC) plummeted over -25% in pre-market trading after the chipmaker issued below-consensus Q4 revenue guidance, citing sluggish demand for PC processors and supply-chain issues affecting its high-margin data center components.
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Chip and AI infrastructure stocks cratered in pre-market trading, extending yesterday’s selloff as earnings from Amazon and Intel further soured sentiment toward the AI trade. Sandisk (SNDK) was down over -8%, Advanced Micro Devices (AMD) was down nearly -8%, and Micron Technology (MU) was down more than -5%.
Investors are now awaiting a new wave of corporate earnings reports, two U.S. economic releases, and remarks from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s major indices ended in the red, weighed down by a slump in Alphabet and chipmakers. Alphabet (GOOGL) tanked over -12% and was the top percentage loser in the Dow after the Google parent reported weaker-than-expected Q3 revenue. Also, chip and AI infrastructure stocks sank, with Sandisk (SNDK) slumping over -5% and Micron Technology (MU) dropping more than -4%. In addition, ServiceNow (NOW) cratered over -26% and was the top percentage loser in the S&P 500 after the software company issued soft FQ4 subscription revenue guidance. On the bullish side, Carvana (CVNA) jumped more than +15% and was among the top percentage gainers in the S&P 500 after the used-car retailer said it sold over 200,000 vehicles in the third quarter and reported record revenue.
Economic data released on Thursday offered few surprises for the Fed, which kept interest rates unchanged a day earlier as it waits for the “accumulation” of more data. The U.S. Bureau of Economic Analysis, in its initial estimate of Q3 GDP growth, said the economy expanded at a +3.4% annualized rate, stronger than expectations of +3.2%. Also, the U.S. core PCE price index, a key inflation gauge monitored by the Fed, rose +0.3% m/m and +3.1% y/y in September, in line with expectations. In addition, U.S. September personal spending rose +0.5% m/m, weaker than expectations of +0.6% m/m, and personal income grew +0.2% m/m, weaker than expectations of +0.3% m/m. Finally, the number of Americans filing initial jobless claims unexpectedly fell by 1K last week to 194K, compared with expectations of 198K.
“Overall, it was another strong round of economic data that shows ongoing inflationary pressures and growth split between the AI buildout and consumption,” said Ian Lyngen at BMO Capital Markets.
Meanwhile, U.S. rate futures are currently pricing in a 74.4% probability of a 25-basis-point rate hike and a 25.6% probability of no rate change at the December FOMC meeting.
Today, investors will focus on the U.S. Employment Cost Index, which is set to be released in a couple of hours. Economists expect the ECI to increase +0.8% q/q in the third quarter, following a +0.9% q/q rise in the second quarter.
The U.S. Chicago PMI will also be released today. Economists forecast the October figure at 55.8, compared with 58.8 in the previous month.
In addition, market participants will parse comments today from San Francisco Fed President Mary Daly and St. Louis Fed President Alberto Musalem.
On the earnings front, prominent companies including ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), and General Dynamics (GD) are scheduled to report their quarterly results today. According to Bloomberg Intelligence, S&P 500 companies are expected to post an average +25% jump in third-quarter earnings from a year earlier.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.94%, down -0.04%.
The Euro Stoxx 50 Index is down -0.80% this morning as rising oil prices and a selloff in technology stocks dampened sentiment. Technology stocks plunged on Friday as another batch of disappointing U.S. tech earnings deepened concerns about the AI trade. Mining stocks also sank, tracking a slump in metal prices. Despite Friday’s drop, the benchmark index was on track for a solid weekly gain. Investors also digested a flurry of regional economic data. Preliminary data released on Friday showed that France’s annual inflation rate picked up more than expected in October, while Spain’s annual inflation rate held steady this month. In addition, data showed that the number of unemployed people in Germany rose slightly less than expected in October. Meanwhile, Eurozone government bond yields were mixed on Friday, with French yields climbing after disappointing domestic economic data and German yields falling on haven demand. Investor attention now shifts to Germany’s preliminary inflation data for October, due later in the session. In corporate news, AstraZeneca (AZN.LN) rose over +3% after the company reported stronger-than-expected Q3 results and reaffirmed its guidance for 2026 and 2030.
France’s CPI (preliminary), Spain’s CPI (preliminary), Germany’s Unemployment Change, and Germany’s Unemployment Rate were released today.
The French October CPI rose +0.4% m/m and +3.4% y/y, stronger than expectations of +0.2% m/m and +3.2% y/y.
The Spanish October CPI rose +0.6% m/m and +4.9% y/y, in line with expectations.
The German October Unemployment Change stood at 4K, stronger than expectations of 5K.
The German October Unemployment Rate was 6.4%, in line with expectations.
Asian stock markets today settled in the red. China’s Shanghai Composite Index ($CHSC) closed down -1.44%, and Japan’s Nikkei 225 Stock Index ($NKY) closed down -2.12%.
China’s Shanghai Composite Index closed sharply lower today, weighed down by a selloff in the technology sector. Technology stocks cratered on Friday as another round of disappointing U.S. tech earnings further dampened global AI sentiment. Eoptolink Technology plunged over -14% despite reporting a 61.15% year-over-year increase in Q3 net profit, while Zhongji Innolight fell about -5% even as its net profit surged 173.7% YoY. The latest U.S. tech earnings deepened the selloff in Chinese technology stocks, which had already come under heavy pressure this month amid concerns about stretched valuations and fierce domestic competition. As risk sentiment soured, investors rotated into defensive sectors, with consumer stocks among Friday’s biggest gainers. Investors also sought safety in exchange-traded funds tracking longer-dated government bonds. Two onshore ETFs tracking Chinese 30-year government bonds attracted 13.8 billion yuan ($2.1 billion) in net inflows in October, the most since July 2025, according to data compiled by Bloomberg. The benchmark index posted a steep weekly loss. Investor focus now turns to China’s PMI gauges for October, scheduled for release on Saturday. Economists expect the manufacturing PMI to hold steady at September’s level, staying in expansion territory, while growth in the non-manufacturing sector is projected to pick up, supported by spending during the National Day holiday.
Japan’s Nikkei 225 Stock Index closed sharply lower today as disappointing earnings from U.S. tech companies Intel and Amazon.com prompted investors to rotate out of the AI trade. Semiconductor and other AI-related stocks cratered on Friday. Memory-chip maker Kioxia Holdings slumped over -7%, tech investor SoftBank Group slid nearly -6%, and chip-testing equipment maker Advantest fell more than -5%, weighing heavily on the Nikkei. The benchmark trimmed its losses slightly after the Bank of Japan left interest rates unchanged, as widely expected. Despite Friday’s slump, the Nikkei notched a weekly gain. The BOJ policy board voted 8-1 to keep its policy rate unchanged at 1.25%, with hawkish board member Hajime Takata dissenting in favor of a hike. In its quarterly outlook report, the central bank indicated for the first time that underlying inflation has reached its 2% target, a milestone that could pave the way for a rate hike as early as December. Underlying consumer inflation “is at a level that is generally consistent with the price stability target of 2%, and is expected to remain at around that level,” the BOJ said. The bank also revised its projections, forecasting a key inflation gauge to rise 2.6% in the next fiscal year, up from the 2.4% it projected three months ago. In a surprise move, the BOJ also announced that it would nearly triple the pace of sales of its ETF holdings starting in January to about 860 billion yen ($5.5 billion) annually. BOJ Governor Kazuo Ueda said at a press briefing that he would continue assessing the need for a rate hike at each meeting, including the next one in December. Data released on Friday, hours before the BOJ decision, showed that Tokyo’s annual core inflation stayed well above the BOJ’s 2% target in October, highlighting persistent price pressures. Separate data showed that Japan’s monthly industrial production rose more than expected in September, while retail sales growth unexpectedly slowed last month. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +31.09% at 33.82.
The Japanese October Tokyo Core CPI rose +2.6% y/y, in line with expectations.
The Japanese September Industrial Production (preliminary) rose +2.2% m/m, stronger than expectations of +1.2% m/m.
The Japanese September Retail Sales rose +2.3% y/y, weaker than expectations of +3.3% y/y.
The Japanese September Unemployment Rate was 2.4%, stronger than expectations of no change at 2.5%.
Pre-Market U.S. Stock Movers
Amazon.com (AMZN) slumped more than -7% in pre-market trading after the e-commerce giant reported weaker-than-expected Q3 results. The company’s core e-commerce business grew at its slowest pace in three years, while capital expenditures came in well above expectations. Amazon also issued disappointing Q4 revenue guidance.
Intel (INTC) plummeted over -25% in pre-market trading after the chipmaker issued below-consensus Q4 revenue guidance, citing sluggish demand for PC processors and supply-chain issues affecting its high-margin data center components.
Chip and AI infrastructure stocks cratered in pre-market trading, extending yesterday’s selloff as earnings from Amazon and Intel further soured sentiment toward the AI trade. Sandisk (SNDK) was down over -8%, Advanced Micro Devices (AMD) was down nearly -8%, and Micron Technology (MU) was down more than -5%.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - October 30th
ExxonMobil Holdings (XOM), AbbVie (ABBV), Chevron (CVX), General Dynamics (GD), Regeneron Pharmaceuticals (REGN), Canadian National Railway Company (CNI), Colgate-Palmolive Company (CL), Imperial Oil (IMO), Dominion Energy (D), Exelon (EXC), Kenvue (KVUE), Cameco (CCJ), Cboe Global Markets (CBOE), Church & Dwight Co. (CHD), nVent Electric (NVT), LyondellBasell Industries (LYB), Magna International (MGA), RBC Bearings (RBC), BrightSpring Health Services (BTSG), Federal Realty Investment Trust (FRT), OneMain Holdings (OMF), Gates Industrial Corporation (GTES), Hess Midstream LP (HESM), Lear Corporation (LEA), Sensient Technologies (SXT), AutoNation (AN), Kite Realty Group Trust (KRG), Piper Sandler Companies (PIPR), WisdomTree (WT), Newell Brands (NWL), Capri Holdings (CPRI), Capital Clean Energy Carriers (CCEC), Carter's (CRI), IRADIMED CORPORATION (IRMD), Standard Motor Products (SMP), OmniAb (OABI), Arbor Realty Trust (ABR), Oil States International (OIS), Verra Mobility (VRRM).
On the date of publication, Oleksandr Pylypenko 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.
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