This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- US Technology stocks plummeted as Alphabet (GOOGL) sank 12% on disappointing sales, dragging the Nasdaq 100 down 1.4% despite a broader market rotation where over 400 S&P 500 stocks advanced.
- US Q3 GDP grew at its fastest pace in a year, but investor sentiment was dampened by a 0.5% rise in September PCE inflation and weak after-hours outlooks from Amazon (AMZN) and Intel (INTC).
- Geopolitical risks intensified as Russian ballistic missiles targeted Kyiv, triggering explosions across the Ukrainian capital and driving safe-haven demand for US Treasuries.
- Air Canada (AC.TO) beat Q3 earnings expectations with an adjusted EPS of CAD 0.75, though it warned of a challenging environment ahead due to rising fuel costs and labor-related charges.
- Starbucks (SBUX) unveiled a China-centric expansion plan, announcing that half of its international openings through FY2027 will be in the Chinese market.
A wave of volatility hit global markets on Thursday as disappointing Big Tech earnings and escalating geopolitical tensions overshadowed robust US economic growth data. While US GDP expanded at its quickest annual rate in a year during Q3, the focus shifted rapidly to the "Magnificent Seven" as Alphabet (GOOGL) saw its shares crater 12% following a revenue miss, sparking fears that massive AI investments are not yet yielding expected returns.
The tech-heavy Nasdaq 100 fell 1.4%, further pressured by after-hours slumps in Amazon (AMZN) and Intel (INTC). Amazon shares retreated as the company signaled higher capital expenditure for AI infrastructure, while Intel struggled with a weak revenue outlook, highlighting the uneven recovery in the semiconductor and cloud sectors.
In the airline sector, Air Canada (AC.TO) reported a resilient third quarter with revenue of CAD 6,984 million, surpassing analyst estimates. Despite the beat, the carrier noted a CAD 906 million year-over-year increase in fuel expenses and projected a challenging fiscal environment with adjusted EBITDA expected between CAD 2,400 million and 2,700 million.
Consumer-facing giants also provided long-term guidance, with Starbucks (SBUX) doubling down on its international strategy. The coffee giant expects 50% of its new international stores to open in China by FY2027, while maintaining capital expenditure at approximately 5% of net revenues. Meanwhile, Gilead Sciences (GILD) posted strong Q3 product sales of $8.29 billion, though its full-year outlook remains impacted by a significant $12.4 billion R&D charge.
Global stability remains a primary concern for investors as Kyiv's mayor reported the city is under active attack from Russian ballistic missiles. The reports of explosions in the capital have reinforced a risk-off sentiment in the fixed-income markets, causing US Treasuries to rally as investors seek safety amid the uncertainty in Eastern Europe.
Central bank policy continues to loom over the horizon. While the Bank of Japan is widely expected to maintain a "hawkish hold" this Friday, New Zealand’s economic outlook softened as the ANZ Consumer Confidence Index fell 1.4% to 96.2 in October. In the US, the Federal Reserve's latest balance sheet update continues to be scrutinized as the market prepares for the next interest rate decision.
Automated market updates written with AI from market data and news wire reports, published without human review.