Market Summary - October 30, 2026
Wall Street's Tech Slowdown
On October 29, 2026, Wall Street closed in the red, with the Dow Jones falling over 0.2%, the S&P 500 down 0.3%, and the Nasdaq dropping nearly 1.4%. The downturn was primarily driven by disappointing earnings from major tech companies and growing concerns regarding the profitability of substantial investments in artificial intelligence (AI).
Amazon's Earnings Report
Amazon reported its quarterly earnings after the market closed, showing a 12% year-over-year revenue increase and a remarkable 39.3% growth in its AWS cloud division. However, the overall results fell short of analyst expectations, leading to a 7% drop in after-hours trading. A significant concern for investors is Amazon's plan to invest approximately $220 billion in AI by 2026, despite currently facing a negative Free Cash Flow of $42.4 billion.
Intel's Setback
Intel also faced challenges, with its third-quarter earnings exceeding analyst expectations but shares plummeting by 20-23% in extended trading. The company provided weak guidance for the upcoming quarter, projecting revenues between $15-16 billion, below the market consensus of $17 billion. This shortfall is attributed to declining PC demand and rising memory prices, compounded by production capacity constraints.
Asian Market Reactions
Asian markets reacted negatively to the disappointing earnings from US tech giants, with the South Korean KOSPI dropping over 4% and Japan's Nikkei declining by more than 2%. Technology firms and semiconductor manufacturers, particularly Samsung and SK Hynix, were significantly impacted as investors expressed skepticism about the returns on AI investments.
Macroeconomic Developments
The Bank of Japan (BoJ) decided to maintain interest rates at 1.25%, surprising some market participants despite acknowledging that domestic inflation has reached its 2% target. The BoJ is taking a cautious approach to assess the impact of previous rate hikes on the economy. Additionally, the BoJ raised its 2027 inflation forecast from 2.4% to 2.6%, indicating persistent inflationary pressures.
Recent Tokyo CPI data showed a year-over-year increase of 2.8%, slightly above expectations, while core CPI matched forecasts at 2.6%.
Geopolitical Tensions
Former President Donald Trump stated that the conflict with Iran could end "very quickly," suggesting potential diplomatic or military resolutions. However, markets remain cautious due to the lack of a concrete peace agreement. The US administration is reportedly considering military actions against Iran post-midterm elections, while Iran has hardened its negotiating stance, demanding significant concessions from the US.
Commodities and Precious Metals
The crude oil market showed resilience, with Brent crude futures around $112 per barrel and WTI crude near $103 per barrel. In contrast, precious metals faced bearish sentiment, with gold falling below $4,000 per ounce and silver dropping nearly 2% to below $51 per ounce.
Cryptocurrency Market Update
Digital asset markets experienced renewed selling pressure following a significant security breach at Binance, with estimated losses around $5.9 billion. Binance temporarily suspended deposits and withdrawals, assuring users that losses would be covered. This incident negatively impacted overall crypto sentiment, with Bitcoin slipping below $79,000 and Ethereum approaching $2,200.