Amazon and Intel earnings disappoint, deepening concerns over AI spending and returns. U.S. stocks slumped on October 30, with the Philadelphia Semiconductor Index down 830 points and Intel plunging 28.6%. Next week focuses on the election, tech earnings and the jobs report.
Global Markets
Threshold pauses tBTC minting and redemption for security maintenance, Aave freezes approximately 1.36億美元 in reserves in the Ethereum main market on 10月31日, existing users can still repay and withdraw, officials say fully collateralized with no loss of funds.
The S&P 500 has surged 100% since early 2023, with AI capital spending, interest rate direction and high valuations fueling crash fears; historical experience suggests responding with a five-year long-term holding horizon and buying quality stocks on dips.
US tech giants reported mostly weaker-than-expected earnings this week, with Alphabet, Facebook, Amazon and Intel shares plunging as heavy AI capital spending dragged on cash flow. Only Microsoft held up the market on surging cloud growth, as fears grow that the arms race is repeating the dot-com bubble.
S&P Global Ratings cut Meta's rating outlook from stable to negative, citing uncertainty over capital expenditures and free cash flow, as third-quarter free cash flow turned negative and massive AI investment raised market doubts about monetization capability.
US midterm elections will be held on 十一月三日, with Democrats expected to retake the House while the Senate outcome remains uncertain. Beyond AI tech stocks, defense, healthcare, financial and cryptocurrency stocks are highly sensitive to the election, with data center regulation in focus.
Spot gold fell below 3900 U.S. dollars per ounce to a one-year low, while silver lost the 50 U.S. dollar level. Hawkish central banks and rising inflation pushed rate expectations higher, and combined with tech-stock selling pressure, precious metals sold off across the board. Accelerating September inflation and higher oil prices reinforced tightening expectations.
AI earnings spark cash-burn fears as Alphabet and Amazon falter and Intel plunges, dragging US stocks lower. Next week brings earnings from Apple and over 100 companies, the US midterm elections, and October nonfarm payrolls, with returns on AI spending still under scrutiny.
US tech giants' earnings raised concerns over AI capital spending and cash flow, with the Philadelphia Semiconductor Index plunging 7.2% and Intel crashing 28.59%. Hsieh Chin-ho said Taiwan stocks will inevitably follow in the short term, but Taiwan plays a picks-and-shovels role in the supply chain so the impact is relatively limited, with election variables in focus ahead.
US tech stocks faced heavy selling pressure on the 30th, with the Nasdaq plunging 2.86% to close at 25437 points, down 5.3% cumulatively in October. Intel tumbled nearly 29% on weak guidance, while AMD and NVIDIA also fell, as funds rotated into defensive stocks.
Intel and Amazon reported weaker-than-expected earnings, deepening market doubts about returns on AI investment. U.S. stocks closed lower across the board on the 30th, with the Philadelphia Semiconductor Index down 7.2%, TSMC ADR down nearly 6%, and Taiex futures in the night session down 867 points to 44,433, as selling pressure intensified.
As Taiwan stocks plunged over 1,000 points, Amazon reported third-quarter revenue of US$201.9 billion, with AWS up 39.3% year-on-year to a record high, but trailing 12-month free cash flow turned negative US$42.36 billion, putting focus on pressure from US$220 billion in capital expenditure.
From Black Monday in 1987 to the 2020 COVID crash, reviewing five major modern stock market plunges, historical data shows market volatility is hard to predict, making diversified allocation and risk management even more essential for investors.
Dragged down by Alphabet's post-earnings plunge, South Korea's KOSPI fell over 4.6% intraday and triggered the Sidecar mechanism. Yu-Ting Lai, manager of Dahua 009829, views it as valuation digestion in the AI investment cycle, not a fundamental reversal.
Nasdaq 100 fell 411 points, down about 1.4% to close at 29403, with Amazon and Intel's disappointing results dragging futures. Hong Kong stocks opened up 52 points at 23011 on the 30th, reaching an early high of 23292, AI hardware fell 4% to 6%, while AIA rose nearly 4% to support the market.
Dragged down by a weak close on Wall Street and after-hours plunges in Amazon and Intel, the Nikkei 225 index closed the morning session down 1,639.69 points, with AI chip and substrate stocks falling across the board; the Bank of Japan held rates steady at 1.25%, with markets focused on clues about a December rate hike.
US stocks closed lower on 29日, with all four major indexes in the red. Intel warned of near-term PC headwinds and plunged over 20% after hours, Alphabet fell 12.29% on disappointing earnings, TSMC ADR fell 1.75%, and night-session TAIEX futures closed at 45926 points, down 643 points.
Amazon will announce its 2026年第三季 earnings after the US market close on 29日, with market consensus revenue at about 2021.1億美元, focusing on whether AWS growth can sustain its acceleration and whether the 第四季 operating income outlook is strong.
All three major US stock indexes fell Thursday, as Alphabet's third-quarter earnings and revenue missed expectations, plunging over 12%. Microsoft gave up gains, Caterpillar and NVIDIA weakened, the PHLX Semiconductor Index declined, and TAIEX futures in the night session temporarily fell 86 points to 46483.
US September CPI rose to 3.7% year-on-year, with oil prices driving inflation higher, but employment cooled with low hiring and low layoffs, reducing the need for further Fed rate hikes. If a soft landing is achieved, US stocks have gained an average of 23% in the year after rate hikes stop.