Markets Wrap: S&P 500 Dips as Chipmakers Slide and Big Tech Earnings Loom

Stock Market Wrap

Markets Wrap: S&P 500 Dips as Chipmakers Slide and Big Tech Earnings Loom

Oct 30, 2024

Market Overview:

U.S. stock markets declined on Wednesday as investors weighed mixed earnings reports and anticipated further results from major technology companies. The S&P 500 dropped 0.33% to close at 5,813.67, while the Dow Jones Industrial Average lost 91.51 points, or 0.22%, ending at 42,141.54. The Nasdaq Composite, despite an early rise to a new record, closed down 0.56% at 18,607.93.

In the economic data front, U.S. GDP for the third quarter rose at an annualized rate of 2.8%, falling short of the expected 3.1%. Nonetheless, the latest ADP payrolls report for October showed strong job growth, suggesting continued resilience in the labor market. Treasury yields rose, with the two-year yield climbing seven basis points to 4.17% amid tempered bets on policy easing following these reports.

Upcoming earnings reports from Meta Platforms and Microsoft are due later Wednesday, while results from Apple and Amazon are expected Thursday. Despite the recent gains across major indexes, volatility is anticipated in the lead-up to the U.S. Presidential election.

Corporate News:

Caterpillar Inc. lowered its sales outlook due to a global slowdown in construction activity.
Reddit Inc. saw a sharp increase in stock price after reporting sales and forecasts that beat analysts’ expectations.
Snap Inc. surged after posting third-quarter revenue that slightly exceeded forecasts, hinting that its advertising revamp may be resonating with marketers.
Qorvo Inc. issued a disappointing forecast for third-quarter revenue and profit, highlighting concerns over smartphone demand as reports emerge of potential order cuts by Apple Inc.
Coinbase Global Inc. recorded a third-quarter revenue increase, though investor reluctance lingers amid the volatility of the cryptocurrency market.
AbbVie Inc. raised its annual profit forecast as demand for key anti-inflammatory drugs, Rinvoq and Skyrizi, surpassed expectations.
Humana Inc. upgraded its 2024 forecast following a better-than-expected third-quarter profit, contrasting with other insurers facing rising medical costs.
Airbus SE reaffirmed its goal of delivering 770 aircraft in 2024, maintaining its target despite ongoing supply-chain issues.

Chipmakers were particularly affected as semiconductor stocks slid. AMD’s shares fell over 10% due to unimpressive revenue guidance, and Super Micro Computer saw a nearly 33% drop after the departure of its auditor raised financial concerns. This sector’s performance weighed heavily on broader market indices, reflecting growing caution among investors.

*All data in this blog is sourced from reputable media outlets such as CNBC, Yahoo Finance, and Bloomberg. If any content infringes on copyright, please notify us for immediate removal.