00:17 10/31 UTC — Bearish
Major equity indices plummeted as a multi-front tech selloff wiped out $1 trillion in market value, anchored by soft guidance from Intel and capital expenditure concerns around mega-cap cloud providers. Negative sentiment was amplified by reported funding target reductions and credit rating warnings within the private AI ecosystem. Markets enter the weekend deeply oversold, with traders looking to upcoming earnings from Apple and Palantir as the next critical directional catalyst.
Equity markets experienced a violent tech-led selloff that wiped out over $1 trillion in market value, with the Nasdaq falling nearly 3% in a single session. The slide was driven by weak forward guidance from key chipmakers, massive free cash flow burn from mega-cap tech, and negative credit risk headlines around AI labs. Defensive rotation and heavy options put volume reflect elevated anxiety ahead of incoming high-profile earnings and upcoming political catalysts.
Outlook
Mixed · 1-3Days (Medium)
Base — Likely
Markets experience elevated volatility and tentative trading as investors await high-stakes earnings reports from Apple and Palantir on Monday evening.
Bull — Possible
Oversold technical indicators on major indices trigger a capitulation bounce back toward key moving averages.
Bear — Possible
Further tech guidance cuts and geopolitical headline risks trigger a second wave of liquidations below critical moving average support.
Hot tickers
- INTC Bearish — Issued weak current-quarter outlook pointing to PC slowdown with client computing revenue down 5% YoY.
- GOOGL Bearish — Suffered worst weekly decline in years amidst broad mega-cap tech selling pressure despite low RSI levels.
- CAT Bearish — Down 9% on the week despite earnings beat and record backlog as heavy options put flow signals cyclical concerns.
- INO Bullish — Surged following FDA approval for VOCERYQ, creating a takeover target narrative and challenging competitor treatments.
- AAPL Neutral — Focus turns to key earnings announcement on Monday to determine if tech selloff gets bought.
Themes
- Mega-Cap Tech and Semiconductor De-Rating
- AI Sector Funding Disruption and Credit Rating Warnings
- Heightened Pre-Election and Geopolitical Risk Aversion
Risks
- Tech selloff wiping out massive market value in a single session
- Spike in options put activity and IV across key market ETFs and individual stocks
- Geopolitical tension spikes ahead of early November regional dates
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