U.S. stock markets saw losses today as investors reacted to a mix of corporate earnings reports and economic data while awaiting results from key technology companies. The Nasdaq Composite fell by 0.6%, closing near its session lows after briefly hitting a record high earlier. Likewise, the S&P 500 and Dow Jones Industrial Average also saw declines, dropping by 0.3% and 0.2%, respectively.
The technology sector was particularly impacted, with Super Micro Computer (SMCI) suffering a significant drop of over 32% following the resignation of its auditor, which raised red flags about the company’s accounting practices. Advanced Micro Devices (AMD) experienced an 11% decrease due to disappointing earnings, while Alphabet (GOOGL) rose by 2.8% after surpassing earnings expectations. Shares of Microsoft (MSFT) and Meta Platforms (META) remained mostly stable as investors await their earnings reports, which are set to be released after the market close.
Among the notable gainers, Garmin (GRMN) shares rallied by 23% following strong quarterly results and a positive outlook, and Reddit (RDDT) jumped by 42% after reporting solid earnings paired with an optimistic future projection. In contrast, pharmaceutical giant Eli Lilly (LLY) dropped by 6.3% after its third-quarter results fell short of analysts’ expectations.
The economic data released today was mixed. While private payrolls surpassed expectations, the preliminary GDP figures for the third quarter came in below forecasts. Investors are closely monitoring these metrics in anticipation of upcoming decisions from the Federal Reserve regarding interest rates, as well as tomorrow’s report on the Fed’s preferred inflation gauge.
In the commodities market, gold hit a record high of $2,800 per ounce, driven by persistent economic uncertainties. In contrast, Bitcoin ended slightly lower at $72,300 after nearing an all-time high yesterday.
This week is expected to remain busy, with earnings reports from major players such as Amazon and Apple expected tomorrow evening, alongside the release of the October jobs report on Friday. These developments could have a significant impact on market movements as investors seek clarity on the economy’s health and potential future changes to interest rates.
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