Market
October 29, U.S. stocks opened lower as rising Treasury yields and a wave of disappointing tech earnings pressured sentiment. The Dow Jones fell 0.4%, the S&P 500 slipped 0.4% and the NASDAQ dropped 1.4%, with investors rotating out of high-growth names amid fears of slowing demand.
Declines led the tape: Fortinet falls 25.5% after slashing its billings forecast, Alphabet tumbles 12.8% following an advertising revenue miss, ServiceNow sinks 21.3% on softer 2027 targets, Marvell Technology slides 11.1% after warning of inventory headwinds, Caterpillar retreats 11.0% on weak construction equipment orders. On the upside, Apple gains 1.8% on resilient iPhone demand, Microsoft adds 1.2% after an AI-driven cloud beat, Lumentum jumps 5.4% on takeover chatter, Direxion Daily Semiconductors Bear 3x Shares rises 5.8% amid chip sell-off, while Tesla Motors edges up 0.1% as price cuts offset delivery concerns.
Broader tech weakness hit semiconductors: Direxion Daily Semiconductors Bull 3x Shares sinks 5.6%, Intel drops 2.4%, Micron Technology declines 2.5%, NVIDIA slides 0.7% and Advanced Micro Devices loses 1.8%. Chinese ADRs were mixed, with Li Auto down 1.7%, XPeng Inc. off 1.9% and JD.com nearly flat, while PDD Holdings Inc rises 2.0% and Yum China Holdings, Inc. advances 1.4% on solid consumer spending trends.
News
Alphabet posts soft ad sales, shares plunge 12.8%. The search giant reported slower-than-expected advertising revenue growth, raising concerns about competitive pressures from new AI search rivals. The shortfall wiped more than $200 billion from its market value at the open.
Fortinet cuts billings outlook, stock dives 25.5%. The cybersecurity firm trimmed full-year guidance as enterprises delay large network-security deals, sparking its steepest one-day drop since listing. Analysts warned the miss could signal broader weakness in IT security spending.
ServiceNow slashes long-term targets, sinks 21.3%. Management now expects subscription revenue growth to moderate as macro headwinds weigh on digital-transformation budgets. Investors worried the move undermines the company’s premium valuation.
Caterpillar warns on construction demand, down 11.0%. The heavy-equipment maker cited softening orders from North American dealers and emerging markets, overshadowing a quarterly earnings beat. The guidance stoked fears of an industrial slowdown.
Marvell Technology flags inventory correction, shares slide 11.1%. The chip designer said hyperscale customers are digesting excess stock, delaying new orders into next year. The update added to sector-wide pressure on semiconductors.
Microsoft tops cloud estimates, rises 1.2%. Strong uptake of Azure AI services drove better-than-expected growth, prompting several brokers to lift price targets. Management reiterated confidence in double-digit revenue expansion.
Apple inches higher on robust iPhone 17 preorder data. Early channel checks point to stronger demand for the latest flagship lineup, easing concerns about a maturing smartphone cycle. Suppliers also traded higher on the report.
Lumentum jumps 5.4% amid takeover speculation. Bloomberg reported the optical-components maker has attracted interest from multiple strategic buyers, including networking peers, though talks remain preliminary.
U.S. Q3 GDP revised to 1.2%, fuels rate-cut hopes. The Commerce Department’s second estimate showed growth slowing more than first reported, reinforcing expectations the Federal Reserve could begin easing in early 2027.
Fed Chair Powell reiterates data-dependent stance. Speaking at a banking conference, Powell said policy makers are prepared to adjust rates as needed amid mixed economic signals. Traders kept odds of a December cut near 60%.
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