Overview
- US tech giants reported third-quarter results that fell short of expectations and highlighted very large AI-related spending, triggering sharp losses in major tech and semiconductor stocks.
- On Friday, disappointing prints from Alphabet, Amazon and Intel widened the selloff on Wall Street as investors questioned the near-term return on costly AI infrastructure.
- European markets held up, with Paris buoyed by strong corporate earnings including TotalEnergies’ $8.3 billion Q3 net profit and better results at banks and pharmas.
- Oil prices rose after reported tanker incidents in the Strait of Hormuz, which helped lift profits at ExxonMobil and Chevron and supported energy-sector gains.
- A surprise ECB rate hold at 2.5% plus Christine Lagarde’s announcement that she will leave in February 2027 added political and monetary uncertainty in Europe that could affect markets going forward.