17:37 10/29 UTC — Bearish
US markets are trading lower and displaying heavy intraday chop, weighed down by steep losses in Alphabet and ServiceNow following earnings disappointments. While macro GDP figures came in higher than expected at 3.4%, sticky inflation and potential Fed interest rate hike commentary continue to dampen risk sentiment. Market participants are closely watching Amazon's upcoming earnings report to determine the near-term path for tech equities.
The market is facing significant downside pressure caused by severe negative earnings reactions in key tech and software names like Alphabet and ServiceNow, alongside a sharp sell-off in biotech. Although macroeconomic data remains relatively solid with GDP showing 3.4% growth, sticky inflation concerns and comments regarding potential Fed rate hikes are weighing on market sentiment. Intraday price action reflects high retail frustration and heavy chop ahead of post-market tech earnings.
Outlook
Bearish · Intraday (Medium)
Base — Likely
Indices remain under pressure in a tight, choppy range until post-close mega-cap earnings reports are released.
Bull — Possible
Strong Q3 numbers and cloud growth from Amazon spark a tech-led recovery into the next session.
Bear — Possible
Disappointing tech earnings after the bell extend tech liquidation and break key index support levels.
Hot tickers
- NOW Bearish — Suffered its worst day in 14 years, falling ~26% following an EPS miss, cRPO guidance cut, and surging debt.
- GOOGL Bearish — Dropped over 12% following a rare top and bottom-line earnings miss and concerns over slowing search and cash flow.
- IOVA Bearish — Plunged 36% to $9.44 following market disappointment over lung trial subgroup response data.
- SPY Bearish — Experiencing choppy conditions and negative momentum due to weakness in mega-cap tech and Fed rate hike warnings.
- AMZN Neutral — Consolidating ahead of Q3 earnings report, with high scrutiny on AWS revenue and aggressive AI infrastructure spending.
Themes
- Mega-cap Tech Earnings Misses
- Macro Inflation and Fed Rate Concerns
- Biotech Clinical Data Volatility
Risks
- Warning of potential Fed rate hikes if upcoming October inflation comes in hot
- High AI-related capital expenditure weighing on corporate free cash flows
- Severe single-day price drops across major enterprise software and biotech stocks
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