In recent market movements, the Dow Jones Industrial Average has experienced a decline, while the Nasdaq has achieved a historic high, drawing attention to tech stock earnings reports. Among significant market activities, Boeing announced plans for a $21 billion stock issuance. Chinese stocks showed mixed performance, with Taiwan Semiconductor Manufacturing Company (TSMC) rising by 1.2% and Zeekr declining by 8.6%. Internationally, precious metals futures generally closed higher, with COMEX gold futures climbing 1.14%. The price of U.S. WTI crude oil saw a slight decline. Major European stock indices all closed lower, with Germany's DAX index dropping 0.26%.
On the macroeconomic front, the European Union has decided to impose a five-year anti-subsidy duty on Chinese electric vehicles. U.S. consumer confidence saw its largest increase since 2021, driven by optimistic views on the labor market. However, U.S. job vacancies have fallen to their lowest point since early 2021, aligning with a slowing labor market. Additionally, U.S. home price gains have moderated in August, as high interest rates deter buyers. South Korea's central bank unexpectedly lowered its economic growth forecast.
In corporate news, Alphabet (GOOGL, Financial), Google's parent company, reported third-quarter revenue of $88.268 billion, with a net profit increase of 34% year-on-year, driven by growth in its Google Cloud business. Despite its strong revenue performance, Advanced Micro Devices (AMD) provided a fourth-quarter revenue forecast below expectations, resulting in a nearly 7% drop in its share price in after-hours trading. Conversely, Reddit's stock surged 16% after hours.
Other notable corporate developments include Elon Musk's xAI company planning a new funding round valued at $40 billion, and Visa facing a potential layoff of around 1,400 employees. Dutch company ASM International exceeded expectations with its third-quarter orders, thanks to the booming interest in artificial intelligence. OpenAI's ambitions to develop its own chips were revealed, possibly partnering with Broadcom and TSMC. Meanwhile, Apple introduced a new Mac mini with an M4 Pro chip, positioned against OpenAI's products.
Elsewhere, McDonald's third-quarter sales fell short of analyst expectations due to weak international market performance. In response to a major E. coli incident that drastically reduced foot traffic, McDonald's is implementing new consumer strategies. Santander Bank is set to reduce its workforce in the UK by 1,425 employees, and Audi is in talks with potential investors for its troubled Brussels plant.
On the commentary side, Morgan Stanley's CEO stated that the era of zero interest rates and inflation has ended. Barclays predicts that the U.S. Treasury will expand inflation-protected securities issuance but should pause such actions. U.S. bond markets saw a strong demand for the 7-year Treasury note, recovering midday losses. The dollar's rise was limited after job data releases, while the yen weakened. Additionally, U.S. treasuries are on track for their worst monthly performance in over two years due to election and new debt issuance pressures.
