Nasdaq falls into correction territory as tech sinks, Amazon earnings beat
The war-sparked risk-off sentiment continued to weigh on global stock markets, with Wall Street sinking for the second straight trading day. Nasdaq slumped into correction territory, down 10% from the year-high in July as technology stocks slumped amid mixed earnings results. All the mega-cap tech stocks fell between 1% and 4%. Meta Platforms slid 3.7% as the company warned of softening advertising demands and increased spending on its Reality Labs. Amazon’s stocks jumped before cutting gains in after-hours trading amid mixed earnings results.
On the economic front, the US advanced third-quarter GDP was surprisingly strong, up 4.9% year on year, a jump from 2.1% in the second quarter. The data may keep the Fed on its hawkish policy stance for longer. However, markets are still pricing no more rate hikes amid the Hamas-Israel war as government bond yields slid and the US dollar’s upside momentum eased.
Gold futures were flat but stayed at the recent high of US$1,995 per ounce, while crude oil fell as Israel may pause the plan for a ground invasion of the Gaza Strip. However, natural gas prices climbed for the fourth straight trading day on fears of a further development of geopolitical tensions in the Middle East.
Asian markets are set to open mixed. ASX 200 futures were down 0.23%, Hang Seng Index futures were up 0.46%, and Nikkei 225 futures fell 0.23%.