To The Moon

Wall Street Ends October on a Downward Trend Due to Tech Stock Sell-off

🇺🇸 S&P 500 Index: -1.85% 📉

🇺🇸 Nasdaq Index: -2.75% 📉

🇪🇺 Stoxx 600 Index: -1.19% 📉

🇯🇵 Nikkei 225 Index: -0.50% 📉

🇭🇰 Hang Seng Index: -0.30% 📉

🇨🇳 CSI 300 Index: 0.05% 📈

🇸🇬 Straits Times Index: Market Closed

The U.S. stock market ended October lower, led by declines in tech stocks. The S&P 500 and Nasdaq Composite fell by -1.9% and -2.8% respectively, as disappointing earnings expectations from tech giants weighed on market sentiment.

The U.S. PCE price index rose 2.1% year-on-year in September 2024, in line with Dow Jones estimates and closer to the Federal Reserve's target. However, the core PCE price index rose 2.7% year-on-year, slightly above the forecast of 2.6%.

For the week ending October 26, U.S. initial jobless claims fell to 216,000 as the economic impact from early-month hurricanes began to fade.

In October 2024, the Eurozone consumer inflation rate accelerated to 2.0% year-on-year, up from 1.7% last month and above the forecast of 1.9%, mainly due to base effects.

Asia-Pacific stock markets generally declined, with the Nikkei 225 down -0.5%, mirroring Wall Street's overnight losses. The Hang Seng Index fell -0.3%, as investor focus shifted from improvements in manufacturing to next week's legislative meeting and the U.S. election results.

In October 2024, China's National Bureau of Statistics reported a manufacturing PMI of 50.1 (forecast: 49.8), indicating the first expansion in factory activity since April, while the services PMI was reported at 50.2, below the market expectation of 50.4.

The Bank of Japan (BoJ) unanimously kept the key short-term interest rate around 0.25% in the October meeting, in line with market expectations.

💡 Upcoming Events: 💡

Investors will be looking forward to the release of U.S. average hourly earnings, non-farm payrolls, unemployment rate, and ISM manufacturing PMI, as well as Malaysia's S&P Global Manufacturing PMI and China's Caixin Manufacturing PMI on Friday.

💡 Things to Know Today: 💡

1. China's electric vehicle manufacturer BYD $BYD COMPANY(01211)$  reported third-quarter revenue for 2024 of $28.24 billion, a 24% year-on-year increase, surpassing Tesla's $25.18 billion during the same period, although Tesla still leads in net profit.

BYD

2. Samsung Electronics $Samsung Electronics Co., Ltd.(SSNNF)$   reported third-quarter sales and operating profit slightly above expectations, but its semiconductor division's operating profit dropped significantly by 40% year-on-year to $2.8 billion, with Samsung stating that "inventory adjustments negatively impacted mobile demand."

Samsung

3. SMCI $SUPER MICRO COMPUTER INC(SMCI)$ announced that Ernst & Young has resigned as its auditor, with the accounting firm commenting that it can "no longer rely on management and audit committee statements." Its stock price fell by 32.7% on Wednesday.

SMCI

4. Microsoft $Microsoft(MSFT)$ reported third-quarter earnings and revenue that exceeded expectations, with growth rates of 11% and 16% respectively, while it projected quarterly revenue to be between $68.1 billion and $69.1 billion, slightly lower than the London Stock Exchange's estimate of $69.83 billion.

Microsoft

5. Meta released strong third-quarter results for 2024 that exceeded expectations, but reported user numbers below expectations and warned that its AI-related infrastructure spending will accelerate significantly in 2025.

Meta

✅ Key Points:

The VIX index, known as Wall Street's "fear gauge," rose slightly as investors brace for increased volatility from upcoming corporate earnings, the U.S. presidential election, and Federal Reserve policy meetings.

@Daily_Discussion  @TigerStars  @Tiger_comments  @TigerGPT