US Stocks Close All Lower as Tech Leads Declines
US stocks closed all lower on the 29th, with the Dow Jones Industrial Average falling 132.54 points to close at 52342.56 points, down 0.25%. The S&P 500 fell 23.59 points to close at 7720.39 points, down 0.30%, ending three straight days of gains. The Nasdaq fell 365.13 points to close at 26184.72 points, down 1.38%. The Philadelphia Semiconductor Index fell 165.8 points to close at 11518.20 points, down 1.42%, showing expanding selling pressure in tech stocks.
Alphabet Earnings Miss Raises AI Concerns
Google parent Alphabet reported third-quarter adjusted earnings per share and revenue both below market expectations, with core search revenue of $63.35 billion, below the estimated $64.96 billion, total revenue of $127.58 billion, below the expected $128.22 billion, and free cash flow turning to negative $9.07 billion, sending shares plunging 12.64%. Full-year capital expenditure is estimated at $195 billion to $205 billion, once again raising market concerns over AI investment returns. Chipmaker Marvell plunged over 13%, reportedly in talks to acquire optical equipment maker Lumentum, with a deal possibly announced as soon as next week, but failing to lift shares.
Taiwan Chips Bearish, 46,000 Under Pressure
Taiwan stocks plunged 667.25 points yesterday to close at 46368.33 points, down 1.42%, with turnover of NT$789.15 billion. TAIFEX night session fell 643 points, with 台積電 futures down NT$30 after hours, signaling continued weakness at the open on the 30th and a battle to defend the 46,000 level. By investor flow, the three major institutional investors sold a net NT$83.27 billion, including NT$68.82 billion by foreign investors and NT$21.5 billion by dealers, with only investment trusts buying NT$7.04 billion and government funds buying NT$2.785 billion. Foreign net short futures positions reached 89,522 contracts, up 4,605 in a single day, margin buying rose NT$1.611 billion yesterday, and retail net long futures reached 12,913 contracts, up 4,338 in a single day.
Inflation Heats Up, Market Focuses on Heavyweights
US tech stocks were mixed, with Nvidia down 0.80%, AMD down 2.08%, Broadcom down 1.94%, and memory names weaker, with Micron down 4.98% and SanDisk plunging 5.32%. Apple rose 1.48%, Meta rose 1.96%, Applied Materials rose 1.36%, and Qualcomm rose 1.33%. On the macroeconomy, US third-quarter economic growth was the fastest in a year, but the September personal consumption expenditures price index rose 0.5% month-on-month, the largest increase in six months. The Federal Reserve kept its benchmark rate at 3.75% to 4.00%, after a 1-code hike in September. White House National Economic Council Director Hassett said Thursday that if October inflation data comes in notably high, Fed action would be appropriate. 倫元投顧 analyst 王春盛 believes short-term watch indicators include passive components, memory, silicon photonics, robotics, PCB, IC design and value groups, and investors can weed out weak holdings while buying quality stocks on dips in batches.