U.S. stock markets saw slight declines as investors awaited earnings reports from major tech companies and focused on the upcoming presidential election. The Dow Jones dropped 91.51 points, or 0.22%, to 42,141.54; the Nasdaq fell 104.82 points, or 0.56%, to 18,607.93; and the S&P 500 declined 19.25 points, or 0.33%, to 5,813.67. Despite the dip, the Nasdaq reached an all-time intraday high of 18,785.49.
Investors are keenly watching tech giants' earnings. Among the seven top tech giants, five are reporting their earnings this week. Alphabet (GOOGL, Financial) saw its Class A shares rise 2.9% after announcing stronger-than-expected earnings, driven by robust growth in its cloud business. Meanwhile, AMD (AMD) plummeted 10.6% due to a disappointing fourth-quarter revenue forecast. Earnings from Meta Platforms (META) and Microsoft (MSFT) are expected soon, while Apple (AAPL) and Amazon (AMZN) are set to report their earnings shortly.
On the economic data front, U.S. GDP grew by 2.8% in the third quarter, slightly below the estimated 2.9%. The report indicates strong economic growth despite global headwinds and uncertainty from the upcoming election. Consumer spending, which accounts for the largest portion of economic activity, grew by 3.7%, the largest increase since early 2023.
October's ADP employment numbers surged, adding 233,000 jobs compared to an expected 111,000, marking the highest level in over a year despite disruptions from a major storm in the Southeast. Analysts attribute strong employment growth despite challenges, suggesting resilient hiring as the year closes.
Additionally, the U.S. core PCE price index for the third quarter was initially reported at 2.2%, slightly higher than the 2.1% forecast.
Market attention is also focused on the impending U.S. presidential election, with concerns about its impact on financial markets. Comments from Vice President Kamala Harris and strategies from UBS and Goldman Sachs highlight varying expectations for post-election market movements.
In tech news, Microsoft launched GitHub Spark, an AI tool simplifying software development, and Nvidia addressed critical security issues in its GPU drivers. Tesla CEO Elon Musk made headlines by predicting a future dominated by humanoid robots, which he believes will significantly boost Tesla's market value. Meanwhile, electric vehicle maker BYD reported quarterly revenue surpassing Tesla's.
AMD saw a significant stock decline due to underwhelming revenue guidance, with analysts adjusting their price targets accordingly. In contrast, Alphabet (GOOGL, Financial) shares rose on better-than-expected financial performance, particularly in its cloud division.
