U.S. tech stocks fell overnight, halting the gains seen earlier in the week, as disappointing earnings from two industry giants reignited doubts about whether tens of billions of dollars spent on artificial intelligence will deliver sufficient returns. The Nasdaq 100 index briefly tested 30,000 points but has since retreated to around 29,300.
Alphabet Inc.’s shares plunged 10% in after-hours trading after the company reported weaker-than-expected sales, intensifying concerns that Google—despite investing hundreds of billions into AI technology—is still losing market share to rivals.
However, not all news was negative. Microsoft’s stock rose 2.9% in after-hours trade, driven by strong cloud sales, while Oracle surged 11% earlier in the session following its release of long-term free cash flow guidance. Oracle’s credit risk metrics also showed the largest improvement in nearly nine months.
Nomura strategist Takayama Wataru said: “Market expectations are already very high, so in a sense, merely meeting them isn’t enough. Unless companies can prove their earnings growth exceeds these already elevated expectations, their shares may fall when they report results.”
In Asia-Pacific markets, Samsung Electronics dropped 6.6% at one point after failing to unveil a new shareholder return plan, dragging down the Korea Composite Stock Price Index (KOSPI) by 2.1%. This contrasted sharply with Wednesday’s performance, when the benchmark index posted its biggest single-day gain since July, fueled by strong earnings from chipmaker SK Hynix and broad-based strength in tech stocks.
Overnight, Federal Reserve officials kept interest rates unchanged at 3.75%-4.00%, with Wash reiterating the commitment to controlling inflation but not explicitly signaling a rate hike at the next meeting in December.
For gold traders, the Fed’s decision on Wednesday was largely expected. With energy prices remaining high, efforts to curb inflation have become more complicated, and markets widely anticipate a rate hike in December. Tightening monetary policy is generally unfavorable for non-yielding assets like gold.
J.P. Morgan Private Bank Asia’s head of interest rate and foreign exchange strategy noted that as year-end approaches and liquidity thins, gold prices could move in either direction. Gold won’t find a “solid bottom” until interest rates peak.
Plugin Case Examples
Gold: Yesterday, our plugin highlighted a yellow zone indicating potential liquidation-driven reversal. In hindsight, this has already materialized. For today, focus first on the breakout direction after price consolidation. If prices break higher, we recommend entering a buy on pullback; if they break lower, we’ll wait near 4110 for a rebound after liquidation.
(Gold 15-minute chart)
Nasdaq: Prices continued falling after U.S. markets closed, but short-term oversold signals appear. We suggest watching for a bounce after liquidation in the 29,200/29,300 area.
(Nasdaq 15-minute chart)
Crude Oil: The prior yellow zone alert correctly predicted a liquidation-driven rebound. After touching above 104 overnight, prices pulled back. We’re now monitoring the liquidity zone near 100. If a V-shaped reversal occurs after a downward sweep, we recommend taking a position.
(Crude Oil 15-minute chart)
Today’s Key Economic Data and Events:
17:30 UK September mortgage approvals
18:00 Eurozone October industrial sentiment index
18:00 Eurozone October economic sentiment index
20:30 US initial jobless claims for the week ending October 24
20:30 U.S. Core PCE Price Index YoY for September
20:30 U.S. Personal Expenditure MoM for September
20:30 U.S. Q3 Real GDP Annualized Quarter Rate (Preliminary)
20:30 U.S. Q3 Real Personal Consumption Expenditures Quarter Rate (Preliminary)
20:30 U.S. Q3 Core PCE Price Index Annualized Quarter Rate (Preliminary)
20:30 U.S. Core PCE Price Index MoM for September
21:15 European Central Bank announces interest rate decision
21:45 ECB President Lagarde holds press conference
22:30 U.S. EIA Natural Gas Inventory for the Week Ending October 23
04:00 Next day: Amazon and Intel release after-hours earnings reports
