Tech Stock Selloff Deepens on Earnings, Oil Rises: Markets Wrap
(Bloomberg) — US stock futures fell for a second day after another round of disappointing tech earnings accelerated a rotation out of the sector amid signs that the core businesses of America’s tech giants are slowing as they pour money into artificial intelligence. Crude oil gained.
Futures for the tech-heavy Nasdaq 100 sank more than 2% after earnings from Amazon.com Inc. and Intel Corp. raised fresh concerns about capital expenditure. S&P 500 contracts were down 1%. Amazon slumped 7.4% in US premarket trading, while Intel plunged 25%. Bitcoin fell 1.2% after Binance, the world’s largest crypto exchange, suspended all deposits and withdrawals as it investigated a suspected hack. Crypto—linked socks including Strategy Inc. declined.
Brent crude rose 1.9% to about $117 a barrel on worries the US may resume military strikes against Iran, risking fresh turbulence in the region and hurting energy flows. Gold dropped below $4,000 an ounce, while silver slipped 2.4% and was poised for its weakest close since November.
As risk sentiment worsened, traders sought safety in haven assets such as the Swiss franc and bonds. The Swiss currency the biggest gainer against the dollar among Group-of-10 peers, while Treasuries rose across the curve. The yen strengthen as the Bank of Japan kept its policy settings unchanged as economists had predicted.
After a three-day rally this week, technology stocks turned lower on Thursday as Alphabet Inc.’s shares posted a record drop following its results announcement. Traders sold off Samsung Electronics Co.’s stock after the company’s earnings missed estimates and it delayed the release of its shareholder return plan. Investors are also concerned about rising borrowing costs as companies take on billions of dollars of debt for the AI buildout, with Microsoft Corp.’s shares falling on Thursday after it announced a $25 billion debt offering.
“Tech earnings have proven a major hurdle with investors suddenly becoming capex vigilantes,” said Jai Malhi, a senior equity strategist at Vanda Research. “With seemingly higher funding costs of capex, if revenue growth is not beating a high bar then tech names are being punished.”
Shares of companies tied to AI infrastructure tumbled in premarket trading, with chipmakers such as Nvidia Corp. down 2.8% and Advanced Micro Devices Inc. falling 6.9%. Server and storage provider Super Micro Computer Inc. fell 5%, with power producer Bloom Energy Corp. down 7% and cloud-computing firm CoreWeave Inc. retreating 6%.
Even as the latest earnings have deepened doubts over whether heavy spending can generate returns quickly enough to justify lofty valuations, the damage for equity markets has largely been confined to tech. More than 400 S&P 500 index members advancing Thursday as investors rotated into more defensive stocks. Bonds have also benefited from haven demand.
Treasury yields dropped at least one basis point across the curve, extending declines from the New York session. Bonds in Gewrmany and the UK tracked the moves, with yields on the respective benchmark 10-year notes falling around two basis points.
Benchmark Treasury yields have dropped almost 40 basis points in October to head for their first monthly decline since February.
What Bloomberg Strategists Say…
“Bonds are back as go-to havens and Treasuries are leading the charge. Treasury 10-year yields are sliding further on Friday, bringing the cash rate below the level it was in September when the Federal Reserve raised interest rates.”
— Mark Cranfield, MLive Strategist. For full analysis, click here.
Meanwhile, Europe’s Stoxx 60 benchmark nudged 0.2% lower, with basic resources and technology sectors falling more than 1% each. AstraZeneca Plc and Sanofi SA gained on profit beats.
The latest economic data weighed on sentiment: France unexpectedly contracted in the third quarter, putting the economy on a weak footing as it faces headwinds from surging borrowing costs, violent protests and political and budgetary uncertainty. French bonds declined.
Corporate News:
AstraZeneca Plc profit rose more than expected in the third quarter, driven by its booming oncology business. BP Plc said profit surged to the highest in 18 years as soaring refining margins boosted earnings. NatWest Group Plc joined its UK banking peers in sticking to its outlook for the year, even with interest rates set to rise, after a steady third quarter that roughly matched estimates. Tesco Plc agreed to sell its supermarket division in the Czech Republic and Slovakia to Ahold Delhaize for an enterprise value of €1.7 billion (£1. 5 billion) as it continues to focus on its core UK business Credit Agricole SA joined its French rivals in reporting higher profit for the third quarter, but warned that the recent turmoil in France could hurt business there in coming months. Sanofi raised its forecasts for sales and profit this year for a second straight quarter on rising demand for its top-selling skin and asthma drug Dupixent. Czech arms billionaire Michal Strnad has offered about €30 billion ($33.5 billion) to buy the family holding company behind eyewear firm EssilorLuxottica SA, according to a letter seen by Bloomberg. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.2% as of 9:45 a.m. London time S&P 500 futures fell 1% Nasdaq 100 futures fell 2.3% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index fell 1.1% The MSCI Emerging Markets Index fell 1.5% Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.2% to $1.1197 The Japanese yen rose 0.2% to 157.32 per dollar The offshore yuan was little changed at 6.6505 per dollar The British pound rose 0.4% to $1.3430 Cryptocurrencies
Bitcoin fell 1.5% to $77,592.95 Ether fell 1.4% to $2,226.3 Bonds
The yield on 10-year Treasuries was little changed at 4.93% Germany’s 10-year yield declined two basis points to 3.34% Britain’s 10-year yield was little changed at 5.29% Commodities
Brent crude rose 1.6% to $116.72 a barrel Spot gold fell 0.8% to $3,990.54 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy and George Nixon.
(An earlier version of the story corrected the magnitude of the S&P 500 futures move in the second paragraph.)
©2026 Bloomberg L.P.
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