Megatech spooks markets

Allan Tong Posted On October 31, 2024

On Hallowe’en Wednesday, markets sank on earnings from two of the biggest stocks in the world, Microsoft and Meta, which reported the day before. Though the companies reported strong top and bottom lines, both announced higher spending in AI, which may cut into future profits.

MSFT closed -5.73% and Meta -4.19%. Meanwhile, Nvidia was the most-active name at -4.45% and the woes of Super Micro Computer continued at -4.45%. Beyond tech, Estee Lauder reported its worse day ever at -21.04%. The U.S. 10-year yield continued to edge higher, to 4.278%, while Bitcoin slid 4% to US$69,950.

In Toronto, the TSX closed -1.35% or down 330 points. Only financials rallied, albeit vigorously, while all other sectors sank. Materials and tech were the biggest losers. Notable names: Bausch Health 12.66%, Tamarack Valley Energy 6.41%, Veren -14.44%, Manulife -2.38% and Open Text -11.13%. WTI rallied 2.75% to US$70.50 a barrel while gold slipped US$40 to US$2,746. After one of the worst Hallowe’ens ever, the market is poised to recover on Thursday after an after-hours beat from Amazon.

Ⓜ Microsoft Corp (MSFT-Q) -5,73%

🕵️‍♀️ Meta Platforms Inc / Facebook (META-Q) -4.19%

💾 NVIDIA Corporation (NVDA-Q) -4.45%

💾 Super Micro Computer (SMCI-Q) -4.45%

💄 Estee Lauder (EL-N) -21.04%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) -4%

👨‍⚕️ Bausch Health Companies Inc. (BHC-T) +12.66%

🛢 Tamarack Valley Energy (TVE-T) +6.41%

🛢 Veren (VRN-T) -14.44%

🏛 Manulife Financial (MFC-T) -2.38%

💾 Open Text (OTEX-T) -11.13%