U.S. stock markets experienced declines today as investors responded to a combination of corporate earnings announcements and economic indicators, while also anticipating results from major technology firms. The Nasdaq Composite dropped by 0.6%, closing near its session lows after briefly reaching a record high earlier in the day. The S&P 500 and Dow Jones Industrial Average also fell, decreasing by 0.3% and 0.2%, respectively.
In the tech sector, Super Micro Computer (SMCI) faced the brunt of the sell-off, plummeting more than 32% after the resignation of its auditor raised concerns regarding the company’s accounting practices. Advanced Micro Devices (AMD) saw an 11% decline due to underwhelming earnings, whereas Alphabet (GOOGL) gained 2.8% after exceeding earnings expectations. Shares of Microsoft (MSFT) and Meta Platforms (META) remained relatively unchanged as investors await their earnings reports, scheduled for release after the market’s close.
Among notable gainers, Garmin (GRMN) shares surged by 23% following robust quarterly results and an optimistic outlook, and Reddit (RDDT) climbed 42% after posting solid earnings and a favorable future projection. On the contrary, pharmaceutical giant Eli Lilly (LLY) fell by 6.3% after third-quarter results did not meet analysts’ expectations.
Today’s economic data presented a mixed picture. While private payrolls exceeded expectations, the initial GDP figures for the third quarter fell short of forecasts. Investors are keeping a close eye on these metrics in anticipation of the Federal Reserve’s forthcoming decisions regarding interest rates and tomorrow’s report on the Fed’s preferred inflation metric.
In the commodities sector, gold reached a new high at $2,800 per ounce, fueled by ongoing economic uncertainties. Bitcoin, on the other hand, settled slightly lower at $72,300 after approaching an all-time high yesterday.
This week is set to remain active, with earnings reports from major players such as Amazon and Apple anticipated tomorrow evening, along with Friday’s release of the October jobs report. These events could significantly influence market movements as investors look for insights into the economy’s health and potential future interest rate adjustments.
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