The U.S. stock market faced a setback at the end of October, ending a five-month winning streak. Election uncertainties and mixed tech earnings dampened risk sentiment. This comes amid a surprising slowdown in job growth and expectations for Federal Reserve rate cuts. Betting odds for the 2024 presidential election show a tight race, while gold sees record highs due to investor demand. Ford halts F-150 Lightning production in response to Tesla’s Cybertruck sales surge.
Wall Street is looking towards a positive start to the trading day on Friday, with index futures pointing upwards after a downbeat Thursday session. The focus will be on the crucial monthly jobs data, set to be released later today. The tech sector remains a key area of interest, with Amazon’s strong earnings report boosting investor sentiment.
Investor disappointment over third-quarter tech earnings triggered a market selloff on Thursday, sending major U.S. indices tumbling. Microsoft’s disappointing Azure cloud forecast and Meta’s heavy investment in AI infrastructure led to significant declines in tech giants, including a $500 billion loss in market capitalization for the ‘Magnificent Seven’ tech group. Inflation data offered mixed signals, with the PCE price index slowing but core PCE remaining elevated.
US markets rallied on Monday driven by anticipation of tech earnings, while Asian markets saw mixed performance as investors awaited key US economic data. Oil prices rebounded after a recent drop, supported by US plans to replenish its oil reserves.
The CNN Money Fear & Greed index showed a positive shift in overall market sentiment, though remaining in the “Greed” zone on Monday. The Dow Jones surged over 250 points, driven by anticipation of earnings reports from tech giants. While some sectors closed higher, information technology and energy stocks bucked the trend, ending the session lower.
Lo Toney, founding partner of Plexo Capital, provides analysis on recent earnings reports from leading tech companies and shares his perspective on the impact of artificial intelligence (AI) on the sector’s future earnings.
Snap Inc. (NYSE: SNAP) shares surged 30% on Friday after the company reported strong financial results for the first quarter of 2023. Daily active users grew 10% year-over-year to 422 million, while Snapchat+ subscribers more than tripled. Revenue rose over 20% to $1 billion, prompting analysts to raise their price targets for the stock. Some analysts believe that a potential TikTok ban could further benefit Snapchat. However, the company remains unprofitable, with losses exceeding $300 million in the first quarter. Some analysts remain skeptical about the sustainability of Snap’s recent growth, while others maintain a more optimistic outlook.
U.S. stock futures gained ground on Friday, buoyed by strong earnings from tech giants Alphabet, Microsoft, and Snap. The positive news offset declines in shares of Intel, ExxonMobil, Hertz Global, Chevron, Phillips 66, and Centene. Investors eagerly await the release of key inflation data, which could influence the Federal Reserve’s monetary policy decisions.
After a recent market slide, a two-day rally has emerged, buoyed by positive sentiment surrounding the tech sector, particularly Tesla. With tech giants like Meta and Microsoft set to release earnings reports, focus shifts to their impact on the industry. Key US economic data, including GDP and core PCE price index, will also shape the market outlook. Amidst these developments, QQQ approaches a crucial resistance area, and analysts provide insights into its technical analysis and trade ideas.
Asian shares advanced on Tuesday, tracking gains on Wall Street as investors turned their attention to upcoming earnings reports from US tech giants. The MSCI index of Asia-Pacific shares outside Japan rose 0.5%, buoyed by a surge in Taiwanese and Hong Kong stocks. Tech shares in the region performed well, while Chinese shares fell. The Japanese yen continued its decline, hitting fresh 34-year lows against the US dollar amid a diverging monetary policy outlook between the US and Europe. Oil prices recovered slightly, while gold prices declined.
