{"id":73841,"date":"2026-10-29T17:08:21","date_gmt":"2026-10-29T21:08:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-slump-and-geopolitical-tensions-weigh-on-markets-despite-strong-us-gdp\/73841\/"},"modified":"2026-10-29T17:08:21","modified_gmt":"2026-10-29T21:08:21","slug":"tech-slump-and-geopolitical-tensions-weigh-on-markets-despite-strong-us-gdp","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-slump-and-geopolitical-tensions-weigh-on-markets-despite-strong-us-gdp\/73841\/","title":{"rendered":"Tech Slump and Geopolitical Tensions Weigh on Markets Despite Strong US GDP"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Technology stocks plummeted<\/strong> as Alphabet (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) sank <strong>12%<\/strong> on disappointing sales, dragging the Nasdaq 100 down <strong>1.4%<\/strong> despite a broader market rotation where over 400 <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> stocks advanced.<\/li>\n<li><strong>US Q3 GDP grew at its fastest pace in a year<\/strong>, but investor sentiment was dampened by a <strong>0.5% rise in September PCE inflation<\/strong> and weak after-hours outlooks from Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) and Intel (<a href=\"\/stock\/INTC\">INTC<\/a>).<\/li>\n<li><strong>Geopolitical risks intensified<\/strong> as Russian ballistic missiles targeted Kyiv, triggering explosions across the Ukrainian capital and driving safe-haven demand for US Treasuries.<\/li>\n<li><strong>Air Canada (<a href=\"\/stock\/AC.TO\">AC.TO<\/a>) beat Q3 earnings expectations<\/strong> with an adjusted EPS of <strong>CAD 0.75<\/strong>, though it warned of a challenging environment ahead due to rising fuel costs and labor-related charges.<\/li>\n<li><strong>Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>) unveiled a China-centric expansion plan<\/strong>, announcing that half of its international openings through FY2027 will be in the Chinese market.<\/li>\n<\/ul>\n<p>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 <strong>US GDP expanded at its quickest annual rate in a year during Q3<\/strong>, the focus shifted rapidly to the &quot;Magnificent Seven&quot; as Alphabet (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) saw its shares crater <strong>12%<\/strong> following a revenue miss, sparking fears that massive AI investments are not yet yielding expected returns.<\/p>\n<p>The tech-heavy Nasdaq 100 fell <strong>1.4%<\/strong>, further pressured by after-hours slumps in Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) and Intel (<a href=\"\/stock\/INTC\">INTC<\/a>). Amazon shares retreated as the company signaled <strong>higher capital expenditure for AI infrastructure<\/strong>, while Intel struggled with a <strong>weak revenue outlook<\/strong>, highlighting the uneven recovery in the semiconductor and cloud sectors.<\/p>\n<p>In the airline sector, Air Canada (<a href=\"\/stock\/AC.TO\">AC.TO<\/a>) reported a resilient third quarter with revenue of <strong>CAD 6,984 million<\/strong>, surpassing analyst estimates. Despite the beat, the carrier noted a <strong>CAD 906 million year-over-year increase in fuel expenses<\/strong> and projected a challenging fiscal environment with adjusted EBITDA expected between <strong>CAD 2,400 million and 2,700 million<\/strong>.<\/p>\n<p>Consumer-facing giants also provided long-term guidance, with Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>) doubling down on its international strategy. The coffee giant expects <strong>50% of its new international stores to open in China<\/strong> by FY2027, while maintaining capital expenditure at approximately <strong>5% of net revenues<\/strong>. Meanwhile, Gilead Sciences (<a href=\"\/stock\/GILD\">GILD<\/a>) posted strong Q3 product sales of <strong>$8.29 billion<\/strong>, though its full-year outlook remains impacted by a significant <strong>$12.4 billion R&amp;D charge<\/strong>.<\/p>\n<p>Global stability remains a primary concern for investors as Kyiv&#39;s mayor reported the city is under <strong>active attack from Russian ballistic missiles<\/strong>. The reports of explosions in the capital have reinforced a <em>risk-off sentiment<\/em> in the fixed-income markets, causing US Treasuries to rally as investors seek safety amid the uncertainty in Eastern Europe.<\/p>\n<p>Central bank policy continues to loom over the horizon. While the Bank of Japan is widely expected to maintain a <strong>&quot;hawkish hold&quot;<\/strong> this Friday, New Zealand\u2019s economic outlook softened as the <strong>ANZ Consumer Confidence Index fell 1.4% to 96.2 in October<\/strong>. In the US, the Federal Reserve&#39;s latest balance sheet update continues to be scrutinized as the market prepares for the next interest rate decision.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Technology stocks plummeted as Alphabet (GOOGL) sank 12% on disappointing sales, dragging the Nasdaq 100 down 1.4% 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