[BRIEFING.COM] The stock market ended Friday's session with substantial losses as the ongoing correction in AI-related stocks intensified, sending the major averages lower for the week. The S&P 500 (-1.8%), Nasdaq Composite (-2.9%), and DJIA (-1.1%) recovered somewhat from their afternoon lows but remained firmly in negative territory, with the technology-heavy Nasdaq bearing the brunt of the selling.

The information technology sector (-4.3%) was the worst performer by a wide margin, with the PHLX Semiconductor Index plunging 7.3% and closing below its 200-day moving average. Intel (INTC 65.76, -26.31, -28.58%) suffered a particularly severe post-earnings decline after issuing disappointing Q4 guidance, citing weakening PC demand amid rising memory prices and supply constraints that are limiting its ability to meet robust data center demand. The outlook also weighed heavily on PC manufacturers HP Inc. (HPQ 28.78, -3.05, -9.58%) and Dell (DELL 424.16, -51.35, -10.80%).

Sandisk (SNDK 1151.43, -178.62, -13.43%) was another major semiconductor laggard despite reporting better-than-expected earnings, as relatively modest revenue guidance upside and caution about seasonal demand trends overshadowed exceptional data center growth. NVIDIA (NVDA 204.78, -8.88, -4.16%) also retreated sharply, adding to the pressure on the semiconductor space and reinforcing concerns about increasingly demanding expectations for AI-related companies.

The weakness extended across mega-cap growth stocks, with the Vanguard Mega Cap Growth ETF (-3.1%) reflecting the continued unwinding of the AI trade. Amazon (AMZN 240.35, -3.44, -1.41%) weighed on the consumer discretionary sector (-0.9%) following an earnings miss and negative free cash flow despite accelerating AWS growth and record operating profitability. The company's plans for even greater infrastructure spending in 2027 added to concerns about the returns on massive AI investments.

The communication services sector (-1.1%) also struggled, with Alphabet (GOOG 278.22, -4.10, -1.45%)extending its post-earnings retreat and Reddit (RDDT 91.67, -37.93, -29.27%) suffering a sharp earnings-driven decline. Meanwhile, the industrials sector (-1.6%) faced significant pressure as weakness spread to AI infrastructure-related companies.

Selling pressure intensified steadily throughout the afternoon, briefly pushing the Nasdaq Composite down nearly 4.0% and extending its retreat from its October peak near 27,700 to roughly 9.0%. The index remained decisively below its 50-day moving average near 26,570, while the semiconductor index's break below its 200-day moving average underscored the deterioration in technical momentum.

Unlike Thursday's session, when widespread strength outside mega-cap technology stocks helped offset losses in the major averages, Friday's retreat was considerably broader. The S&P 500 Equal Weighted Index (-0.8%) also finished lower, while small- and mid-cap stocks faced meaningful selling pressure, leaving defensive strength insufficient to counterbalance the losses elsewhere.

The energy sector (+1.9%) was a notable exception, benefiting from continued strength in crude oil prices. WTI crude settled just above $104 per barrel, adding just under $1.00 for the week, while Chevron (CVX 235.48, +4.02, +1.74%) provided additional support after reporting better-than-expected earnings.

Defensive buying also supported the consumer staples sector (+1.4%), with Walmart (WMT 123.51, +2.26, +1.86%), Coca-Cola (KO 94.08, +1.26, +1.36%), and Mondelez Int'l (MDLZ 64.92, +2.39, +3.82%) among the standouts. The utilities (+0.6%), health care (+0.4%), and real estate (+0.2%) sectors managed more modest gains, with strong earnings reactions in Regeneron Pharma (REGN 927.89, +109.12, +13.33%) and Eli Lilly (LLY 1417.54, +43.84, +3.19%) contributing to the resilience of health care stocks.

Treasuries attracted some safe-haven buying despite elevated crude oil prices, providing a measure of support for interest-rate-sensitive areas of the market.

The week's disappointing finish highlighted a deepening correction in the AI trade, with investors increasingly questioning the pace of infrastructure spending, the sustainability of elevated growth expectations, and the ability of companies to translate strong demand into profitable returns. While defensive sectors continued to attract interest, Friday's widespread selling demonstrated that the rotation away from technology stocks is no longer providing enough support to prevent substantial losses across the broader market.

U.S. Treasuries finished the week on a firmly higher note, turning longer tenors positive for the week while shorter tenors extended this week's gains. The 2-year note yield settled down seven basis points to 4.59% (-9 basis points this week), and the 10-year note yield settled down six basis points to 4.93% (-6 basis points this week)

• Russell 2000: +13.3% YTD
• S&P Mid Cap 400: +10.8% YTD
• S&P 500: +10.7% YTD
• Nasdaq Composite: +9.4% YTD
• DJIA: +7.7% YTD

Reviewing today's data:

• The Q3 Employment Cost Index increased 0.8% (Briefing.com consensus 0.8%) to follow a 0.9% increase in Q2, with wages and salaries rising 0.7% while benefits rose 0.9%.
  • The key takeaway is that wages and salaries for civilian workers were up 3.1% year-over-year, maintaining a trend that continues undershooting inflation. This will feed ongoing concerns about pressure on discretionary spending activity.
• Oct Chicago PMI 55.3 (Briefing.com consensus 55.9; Prior 58.8)

[BRIEFING.COM] The major averages are little changed from their previous levels heading into the final half hour of trading, with technology and semiconductor stocks showing little sign of attracting buying support despite their steep losses.

Meanwhile, Circle Internet Group (CRCL 71.80, -8.20, -10.25%) is plunging more than 10% amid a broader cryptocurrency selloff following reports of a multibillion-dollar security breach at Binance. Circle disclosed that it had frozen more than $800 million in USDC stablecoin funds linked to the exploit, raising concerns about regulatory scrutiny and operational risks. Bitcoin has fallen back below $77,000, while other cryptocurrency-related stocks, including Bitdeer Technologies (BTDR 6.60, -0.98, -12.86%), American Bitcoin Corp. (ABTC 6.60, -0.90, -12.06%), and BitGo Holdings (BTGO 5.27, -0.52, -8.98%), are also suffering double-digit percentage losses.

[BRIEFING.COM] The major averages continue to steadily chart session lows with roughly an hour remaining in today's session. The S&P 500 (-2.5%), Nasdaq Composite (-3.8%), and DJIA (-1.5%) are facing increasingly pronounced losses, with the tech-heavy Nasdaq extending its sharp October reversal.

The Nasdaq has now retreated roughly 9% from its October peak near 27,700, falling decisively below its 50-day moving average near 26,570 and undercutting its late-October lows. The deterioration in technical momentum reflects continued selling pressure across growth stocks amid disappointing earnings reactions and mounting concerns about AI infrastructure spending. The PHLX Semiconductor Index (-9.0%) is leading the retreat, having fallen below its 200-day moving average and remaining on pace for another week of losses (-2.3% WTD). The pronounced weakness in semiconductors is adding to the broader deterioration in technology stocks, while the Nasdaq's psychologically important 25,000 level is emerging as the next area to watch, followed by its late-July low near 24,400.

[BRIEFING.COM] The S&P 500 (-2.4%) has continued its retreat to fresh session lows, revisiting levels last seen in mid-September, though a close at the current mark would represent the lowest settlement since early August.

The steady retreat has masked solid gains in five sectors, including countercyclical consumer staples (+1.8%), utilities (+1.0%), and health care (+0.7%). These three groups have seen steady strength in October, showing month-to-date gains of 11.8%, 10.5%, and 10.0%. Of the three, the utilities sector has been rallying the longest, marking its inflection point a couple days before the turn of the calendar, which brings its gain off its late-September low to 11.7%.

Today's rally in utilities has been paced by Alliant Energy (LNT 72.07, +1.93, +2.74%) even though the stock went ex-dividend. Today's gain has returned LNT to levels from late July while Consolidated Edison (ED 117.12, +1.64, +1.42%) has climbed to a fresh record high.

[BRIEFING.COM] The S&P 500 (-2.1%) has faced continued pressure, which has had the index slipping to fresh session lows through the day while the Nasdaq (-3.3%) has followed the same path. As a result, the two indices are now down a respective 1.2% and 5.8% for the month.

In addition to losses in the technology sector (-4.9%), the market has had to contend with a relentless grind higher in the price of oil, which is up $2.63, or 2.6%, at $104.63/bbl today. This has offered continued support to the energy sector (+1.4%), which has extended its October gain to 13.3% with help from fresh record highs being set in heavyweights Exxon Mobil (XOM 186.40, +3.11, +1.70%) and Chevron (CVX 234.97, +3.51, +1.52%) today.

A rising price of oil has been synonymous with rising Treasury yields in recent months, but today that influence is meeting a counter from a bit of a flight to safety given the volatility in AI-related stocks. This has helped the 10-yr note defend the bulk of today's starting gain with its yield down six basis points at 4.93%, tracking its lowest settlement since the second week of September.

[BRIEFING.COM] The major averages continue to move lower this afternoon, with the S&P 500 (-1.9%), Nasdaq Composite (-3.1%), and DJIA (-1.0%) extending their declines as semiconductor stocks remain at the forefront of the selling pressure.

Meanwhile, the consumer staples sector (+1.8%) remains near session highs, benefiting from defensive buying interest amid the broader market retreat. Walmart (WMT 123.89, +2.64, +2.18%) and Coca-Cola (KO 94.56, +1.74, +1.88%) are providing firm leadership, while Mondelez Int'l (MDLZ 64.98, +2.45, +3.92%) is also trading higher following its earnings report.

[BRIEFING.COM] The stock market is facing a broad retreat at midday, with selling pressure intensifying across technology stocks and increasingly spilling into other areas of the market. The S&P 500 (-1.8%), Nasdaq Composite (-2.9%), and DJIA (-0.9%) have steadily extended their losses throughout the morning, pushing the major averages into negative territory for the week.

The information technology sector (-4.5%) is bearing the brunt of the selling, with the PHLX Semiconductor Index plunging 8.1%. Intel (INTC 64.34, -27.73, -30.12%) is suffering a particularly steep post-earnings decline after issuing Q4 guidance well below expectations, citing weakening PC demand amid rising memory prices and supply constraints that are limiting its ability to meet robust data center demand. The disappointing outlook is also weighing heavily on PC manufacturers HP Inc. (HPQ 28.96, -2.88, -9.03%) and Dell (DELL 416.32, -59.19, -12.45%). Sandisk (SNDK 1152.61, -177.44, -13.34%) is another major semiconductor laggard despite reporting better-than-expected results, as relatively modest revenue guidance upside and management's caution about seasonal demand trends overshadowed exceptional data center growth.

NVIDIA (NVDA 203.25, -10.41, -4.87%) is also contributing to the weakness, while software stocks remain under pressure. Selling across mega-cap growth stocks extends beyond semiconductors, with the Vanguard Mega Cap Growth ETF (-3.2%) reflecting the continued retreat.

Amazon (AMZN 238.16, -5.63, -2.31%) is weighing on the consumer discretionary sector (-1.1%) following an earnings miss and negative free cash flow despite accelerating AWS growth and record operating profitability. Concerns about rising debt and even greater AI infrastructure spending in 2027 are reinforcing investors' scrutiny of returns on massive technology investments. Starbucks (SBUX 104.26, -1.25, -1.18%) is also lower after its FY27 revenue outlook fell short of expectations despite encouraging turnaround progress.

Unlike yesterday's session, when strength across most sectors helped offset weakness in mega-cap technology stocks, today's selling is considerably more widespread. The industrials sector (-1.2%) is also under pressure, while the S&P 500 Equal Weighted Index (-0.8%) is firmly lower despite outperforming its capitalization-weighted counterpart.

Defensive areas are providing some refuge, led by the consumer staples sector (+1.8%). The health care (+0.9%) and utilities (+0.9%) sectors are also advancing, with Regeneron Pharma (REGN 911.05, +92.28, +11.27%) surging to 52-week highs following strong earnings and Eli Lilly (LLY 1420.85, +47.15, +3.43%) extending yesterday's post-earnings rally. The real estate sector (+0.6%) is modestly higher as safe-haven buying in Treasuries provides support for interest-rate-sensitive stocks.

The Russell 2000 (-2.0%) and S&P Mid Cap 400 (-1.6%) are also facing sizable losses, while decliners have maintained a clear advantage over advancers at both the NYSE and Nasdaq.

The broader retreat marks a notable shift from yesterday's session, when strength across most sectors helped cushion the impact of mega-cap technology losses. With semiconductor selling accelerating and earnings reactions adding to concerns about AI investment returns, the market is struggling to find enough support outside defensive areas to offset the mounting pressure on growth stocks.

Reviewing today's data:

• The Q3 Employment Cost Index increased 0.8% (Briefing.com consensus 0.8%) to follow a 0.9% increase in Q2, with wages and salaries rising 0.7% while benefits rose 0.9%.
  
  • The key takeaway is that wages and salaries for civilian workers were up 3.1% year-over-year, maintaining a trend that continues undershooting inflation. This will feed ongoing concerns about pressure on discretionary spending activity.
• Oct Chicago PMI 55.3 (Briefing.com consensus 55.9; Prior 58.8)

[BRIEFING.COM] The major averages continue to steadily chart session lows just after midday, with selling pressure extending beyond mega-cap technology stocks.

HP Inc. (HPQ 28.99, -2.84, -8.92%) and Dell (DELL 422.01, -53.50, -11.25%) are sharply lower following Intel's (INTC 64.78, -27.28, -29.64%) disappointing outlook, which highlighted deteriorating PC demand amid rising memory prices and supply shortages. Intel now expects industry PC unit demand to decline approximately 12% in 2026 and another 10% in 2027, raising concerns about the outlook for PC manufacturers.

Meanwhile, FedEx Freight (FDXF 126.94, +17.26, +15.73%) is a notable standout and the S&P 500's best-performing component today after reporting results for its four-month transition period. Shares have reclaimed their 50-day moving average (118.81) and reached their highest level since mid-September.

[BRIEFING.COM] The major averages continue to chart session lows at midday as selling pressure intensifies across mega-cap technology and growth stocks.

Amazon (AMZN 238.46, -5.34, -2.19%) is contributing to the weakness following its Q3 earnings report, which featured an EPS miss and negative free cash flow despite accelerating AWS revenue growth and record operating profitability. Investors remain concerned about the returns on the company's massive AI infrastructure investments, particularly as management anticipates even higher capital spending in 2027. Rising debt and financing costs are adding to those concerns, weighing on the consumer discretionary sector (-1.0%), while the Vanguard Mega Cap Growth ETF (-2.7%) reflects the broader pressure on the market's largest growth stocks.

Starbucks (SBUX 102.88, -2.63, -2.49%) is another notable consumer discretionary laggard despite reporting better-than-expected earnings and strong comparable sales growth. The company's FY27 revenue outlook fell short of expectations, overshadowing encouraging progress in its turnaround efforts, including improving profitability and stronger U.S. sales trends.

[BRIEFING.COM] The major averages remain sharply lower, with the S&P 500 (-1.4%), Nasdaq Composite (-2.3%), and DJIA (-0.6%) all trading in negative territory for the week. The information technology sector (-3.7%) is the worst performer by a wide margin, with the PHLX Semiconductor Index plunging 6.8% as Intel (INTC 66.02, -26.05, -28.29%) and Sandisk (SNDK 1183.19, -146.86, -11.04%) suffer steep post-earnings losses.

The consumer discretionary sector (-0.8%) is also under pressure following Amazon's (AMZN 240.75, -3.04, -1.25%) earnings report, although the stock has recovered a sizable portion of its initial post-earnings decline.

Strength remains concentrated in a handful of sectors, led by the energy sector (+1.3%) amid higher crude oil prices. The defensive health care (+1.5%), consumer staples (+1.0%), and utilities (+0.7%) sectors are also outperforming.

Meanwhile, the Russell 2000 (-1.4%) and S&P Mid Cap 400 (-1.2%) are firmly lower, with decliners outpacing advancers by roughly 3-to-2 at the NYSE and nearly 3-to-1 at the Nasdaq, reflecting selling pressure beyond the largest technology stocks.

[BRIEFING.COM] The major averages remain firmly lower, although the health care sector (+1.0%) is once again attracting defensive rotational buying amid the continued weakness in technology stocks.

Regeneron Pharma (REGN 922.63, +103.86, +12.68%) is surging to new 52-week highs after reporting better-than-expected Q3 earnings and revenue, supported by strong Dupixent sales growth and improved collaboration economics with Sanofi (SNY 44.58, +1.45, +3.36%).

Eli Lilly (LLY 1434.94, +61.24, +4.46%) is also extending yesterday's post-earnings rally, providing another source of support for the sector.

[BRIEFING.COM] The major averages continue to retreat this morning, with the S&P 500 (-1.5%), Nasdaq Composite (-2.6%), and DJIA (-0.7%) extending their losses as selling pressure intensifies across technology stocks. Semiconductor stocks remain particularly weak, with disappointing earnings reactions adding to concerns about the outlook for AI-related investment and demand.

Intel (INTC 66.16, -25.90, -28.14%) is plunging after issuing Q4 earnings and revenue guidance well below expectations, overshadowing an EPS beat and strong growth in its data center business. The company is struggling with a weakening PC market as elevated memory prices pressure demand, while manufacturing disruptions and supply constraints are limiting its ability to capitalize on robust server CPU demand. Management also expects a sharp sequential decline in profitability next quarter, adding to concerns about the pace of its turnaround.

Sandisk (SNDK 1194.65, -135.40, -10.18%) is another major semiconductor laggard despite beating Q1 earnings expectations and issuing Q2 EPS guidance above consensus. Exceptional data center growth and strong cash generation were overshadowed by relatively modest revenue guidance upside and management's caution surrounding seasonal demand trends in the March quarter. The disappointing reaction highlights the demanding expectations facing memory stocks following their substantial gains this year, with investors increasingly focused on the sustainability of pricing strength and AI-driven growth.

[BRIEFING.COM] The major averages are trading sharply lower this morning, with selling pressure intensifying across technology stocks following another round of disappointing earnings reactions. The S&P 500 (-1.2%) and Nasdaq Composite (-2.2%) are facing sizable losses, while the DJIA (-0.4%) is holding up somewhat better. The retreat has pushed the major averages mostly into negative territory for the week, with the S&P 500 struggling to hold its week-to-date flat line.

The information technology sector (-3.4%) is bearing the brunt of the selling, with Intel (INTC 65.18, -26.89, -29.21%) plunging following its disappointing guidance. Semiconductor stocks are facing particularly pronounced pressure, sending the PHLX Semiconductor Index down 5.7%, while NVIDIA (NVDA 207.76, -5.90, -2.76%) is another notable mega-cap laggard. Software stocks are also extending their recent weakness.

The selling extends beyond the information technology sector, with Amazon (AMZN 237.75, -6.04, -2.48%) retreating following its earnings report and weighing on the consumer discretionary sector (-1.3%). Alphabet (GOOG 279.60, -2.72, -0.96%) continues to slide following yesterday's disappointing earnings reaction, while Reddit (RDDT 98.81, -30.79, -23.76%) is another notable post-earnings laggard, weighing on the communication services sector (-0.5%).

The Vanguard Mega Cap Growth ETF (-2.5%) highlights the continued pressure on the market's largest growth stocks.

Unlike yesterday's session, when strength was widespread outside mega-cap technology, today's gains are considerably more concentrated. Five S&P 500 sectors are trading higher, led by the energy sector (+2.1%) as crude oil climbs back above $104 per barrel. Defensive areas are also attracting interest, with the consumer staples (+1.8%), health care (+1.7%), and utilities (+0.8%) sectors posting solid gains amid the technology selloff and some encouraging earnings reactions of their own. The real estate sector (+0.5%) is also modestly higher as safe-haven buying in Treasuries pushes yields lower, providing support for interest-rate-sensitive stocks.

On the data front,tThe October Chicago PMI came in at 55.3 (Briefing.com consensus 55.9), down from 58.8 in September.

The stock market remains on track for a sharply lower opening this morning, with pronounced weakness in technology stocks continuing to weigh heavily on equity futures. Disappointing earnings and guidance from Amazon (AMZN 226.10, -17.69, -7.26%) and Intel (INTC 68.28, -23.79, -25.84%) are adding to the selling pressure following yesterday's tech-driven retreat, raising concerns about whether the broader market can maintain its recent resilience.

The Q3 Employment Cost Index, increased 0.8% (Briefing.com consensus 0.8%) to follow a 0.9% increase in Q2. The report showed wages and salaries rising 0.7% while benefits were up 0.9%.

The key takeaway is that wages and salaries for civilian workers were up 3.1% year-over-year, maintaining a trend that continues undershooting inflation. This will feed ongoing concerns about pressure on discretionary spending activity.

U.S. equity futures remain sharply lower, with the S&P 500 futures currently trading 79 points below fair value.

Asian markets finished mostly lower on Friday as renewed concerns surrounding AI spending and valuations pressured technology shares, while Hong Kong bucked the regional weakness. Japan's Nikkei 225 fell 2.1% to snap a three-day winning streak, with Lasertec (-9%), Kioxia (-7%), SoftBank Group (-6%), Advantest (-6%), and Tokyo Electron (-5%) retreating following disappointing U.S. technology earnings. The Bank of Japan held its policy rate at 1.25% but said underlying inflation has reached its 2% target and signaled further tightening ahead, while also announcing plans to accelerate sales of its ETF holdings. China's Shanghai Composite dropped 1.4% and the Shenzhen Component sank 2.7%, with Eoptolink Technology (-14%), Hygon Information Technology (-8%), Zhongji Innolight (-5%), SMIC (-4%), and Cambricon Technologies (-4%) extending the volatile unwind in AI-related shares. Hong Kong's Hang Seng bucked the regional weakness with a 1.5% rebound, supported by Meituan (+4%), AIA (+4%), and PetroChina (+3%), although the index still lost 4.5% in October amid continued mainland outflows. South Korea's KOSPI plunged 3.5% for a second consecutive decline, with SK Hynix (-9%), Samsung Electronics (-6%), and Hyundai Motor (-4%) leading the retreat despite September industrial production surging 9.0% m/m and retail sales increasing 3.6%. The sharp reversals in Korea and mainland China underscore how quickly investors have shifted from rewarding evidence of strong AI demand to questioning whether elevated valuations can withstand increasingly demanding expectations. India's Sensex gained 0.4%, providing another pocket of relative strength as investors now look toward China's October manufacturing PMI for the next read on regional economic momentum.

• In economic data:
  • The Bank of Japan held its policy rate at 1.25%.
  • Japan's October Tokyo Core CPI increased 2.6% yr/yr (expected 2.6%; prior 2.7%), Tokyo CPI increased 2.8% yr/yr (expected 3.3%; prior 2.7%), and CPI excluding food and energy increased 2.4% yr/yr (expected 2.7%; prior 2.7%).
  • Japan's September Industrial Production increased 2.2% m/m (expected 1.2%; prior -2.4%).
  • Japan's September Retail Sales increased 2.3% yr/yr (expected 3.3%; prior 2.9%).
  • Japan's September Unemployment Rate was 2.4% (expected 2.5%; prior 2.5%), and the Jobs/Applications Ratio was 1.19 (expected 1.18; prior 1.18).
  • South Korea's September Industrial Production increased 9.0% m/m (prior -4.6%) and 1.2% yr/yr (prior -1.7%).
  • South Korea's September Retail Sales increased 3.6% m/m (prior -1.8%).
  • South Korea's September Service Sector Output increased 0.5% m/m (prior 0.7%).
  • Australia's Q3 PPI increased 1.1% q/q (expected 1.0%; prior 1.3%) and 3.6% yr/yr (prior 3.6%).

European markets trade mixed as another technology selloff collides with a busy slate of economic data showing stronger-than-expected Eurozone growth but renewed inflation pressure in several major economies. Germany's DAX falls 0.5% as the global AI unwind weighs on Siemens Energy (-5%), Infineon (-3%), and Hochtief (-2%), although Bayer (+4%) rallies after securing a favorable verdict in a Roundup lawsuit. France's CAC 40 edges up 0.2% despite a difficult domestic backdrop, with third-quarter GDP unexpectedly contracting 0.1% q/q and October inflation accelerating to 3.4% yr/yr, while STMicroelectronics (-4%) and Schneider Electric (-3%) retreat with technology shares. The U.K.'s FTSE 100 bucks the broader weakness with a 0.4% gain as AstraZeneca (+3%) advances following better-than-expected results, GSK (+2%) rises, and BP (+1%) and Shell (+1%) benefit from strong earnings and elevated oil prices. The divergence again highlights the FTSE's relative insulation from the AI-driven selloff, with its heavier exposure to energy, health care, and consumer companies contrasting with the technology pressure weighing on continental markets. The STOXX Europe 600 slips 0.2%, while Italy's FTSE MIB falls 0.7% after Italian GDP stagnated and inflation accelerated sharply, and Spain's IBEX 35 declines 0.4% despite Spanish GDP meeting expectations.

• In economic data:
  • Eurozone Q3 GDP increased 0.4% q/q (expected 0.2%; prior 0.6%) and 1.3% yr/yr (expected 1.1%; prior 1.2%).
  • The eurozone's September Unemployment Rate was 6.5% (expected 6.4%; prior 6.5%).
  • Germany's Q3 GDP increased 0.2% q/q (expected 0.1%; prior 0.3%) and 1.2% yr/yr (expected 1.1%; prior 1.0%).
  • Germany's October Unemployment Rate was 6.4% (expected 6.4%; prior 6.4%), and the Unemployment Change was +4K (expected +5K; prior +12K).
  • France's Q3 GDP decreased 0.1% q/q (expected +0.1%; prior 0.0%) and 0.1% yr/yr (expected +0.3%; prior +0.5%).
  • France's October CPI increased 3.4% yr/yr (expected 3.2%; prior 3.1%) and 0.4% m/m (expected 0.2%; prior -0.3%).
  • Italy's Q3 GDP was unchanged q/q (expected +0.1%; prior +0.2%) and increased 0.8% yr/yr (expected 0.9%; prior 1.0%).
  • Italy's October CPI increased 5.4% yr/yr (expected 4.6%; prior 4.2%) and 0.9% m/m (expected 0.1%; prior 0.7%).
  • Spain's Q3 GDP increased 0.6% q/q (expected 0.6%; prior 0.7%) and 2.7% yr/yr (expected 2.7%; prior 2.6%).
  • Spain's October CPI increased 4.9% yr/yr (expected 4.9%; prior 4.9%).
  • The U.K.'s October Nationwide HPI was unchanged m/m (expected -0.2%; prior -0.3%) and increased 0.5% yr/yr (expected 0.6%; prior 0.8%).

The S&P 500 futures currently trade 77 points below fair value as tech stocks face another session of substantial pressure. U.S. Treasuries, meanwhile, are off to a hgiher start amid some safe-haven buying, with the 10-year note yield down seven basis points to 4.92%. 

Just released, the Q3 Employment Cost Index increased 0.8% (Briefing.com consensus 0.8%), from a prior increase of 0.9%.

Equity futures point to a sharply lower opening this morning, with technology stocks facing substantial pressure once again following disappointing earnings from Amazon (AMZN) and weak guidance from Intel (INTC). Nasdaq futures are down more than 2.0%, suggesting another difficult session for the tech-heavy index.

The weakness follows yesterday's session, when concerns surrounding AI infrastructure spending weighed heavily on mega-cap technology stocks, although the broader market proved considerably more resilient. Eight S&P 500 sectors finished higher, and the S&P 500 Equal Weighted Index gained 1.2% despite losses in the major averages. That rotational strength faces an additional headwind this morning as crude oil prices climb back above $104 per barrel, potentially limiting the broader market's ability to offset continued technology weakness.

Despite yesterday's losses and this morning's sharp retreat in futures, the major averages remain higher for the week heading into Friday's session, though those gains will be challenged at the open.

Today's remaining economic calendar:

• 8:30 AM ET: Q3 Employment Cost Index; Briefing.com consensus 0.8%; prior 0.9%
• 9:45 AM ET: October Chicago PMI; Briefing.com consensus 55.9; prior 58.8

In corporate news:

• Amazon (AMZN 227.23, -16.56, -6.79%) missed the FactSet earnings consensus, reported roughly in-line revenue, issued in-line fourth-quarter revenue guidance, and reiterated its 2026 capital-spending outlook.
• Chevron (CVX 235.29, +3.83, +1.65%) exceeded FactSet earnings and revenue expectations, supported by higher production and stronger cash flow.
• Intel (INTC 69.10, -22.97, -24.95%) reported a $0.11 EPS beat and in-line revenue but issued Q4 earnings and revenue guidance below consensus estimates.
• NVIDIA (NVDA 207.09, -6.57, -3.07%) is reportedly in talks to provide credit guarantees for an Nscale data center project, according to Bloomberg.
• Regeneron Pharmaceuticals (REGN 878.47, +59.70, +7.29%) topped FactSet earnings and revenue expectations and expanded its collaboration with Sanofi (SNY 44.64, +1.51, +3.50%) to include multiple next-generation immunology antibodies.
• Gilead Sciences (GILD 173.00, +7.39, +4.46%) is indicated higher following its earnings and guidance update.

Reviewing overnight developments:

According to Nikkei, Asian markets finished mostly lower as technology shares came under pressure, although Hong Kong and India showed relative strength.

In news:

• The Bank of Japan kept its policy rate at 1.25%, said underlying inflation has reached its 2% target, signaled further tightening, and announced plans to accelerate sales of its ETF holdings.
• AI-related shares were among the weakest groups in Japan, mainland China, and South Korea.

In economic data:

• Bank of Japan held its policy rate at 1.25%
• Japan's October Tokyo Core CPI +2.6% yr/yr (expected +2.6%; prior +2.7%), Tokyo CPI +2.8% yr/yr (expected +3.3%; prior +2.7%), and CPI excluding food and energy +2.4% yr/yr (expected +2.7%; prior +2.7%)
• Japan's September Industrial Production +2.2% m/m (expected +1.2%; prior -2.4%) and Retail Sales +2.3% yr/yr (expected +3.3%; prior +2.9%)
• Japan's September Unemployment Rate 2.4% (expected 2.5%; prior 2.5%) and Jobs/Applications Ratio 1.19 (expected 1.18; prior 1.18)
• South Korea's September Industrial Production +9.0% m/m (prior -4.6%) and +1.2% yr/yr (prior -1.7%), Retail Sales +3.6% m/m (prior -1.8%), and Service Sector Output +0.5% m/m (prior +0.7%)
• Australia's Q3 PPI +1.1% q/q (expected +1.0%; prior +1.3%) and +3.6% yr/yr (prior +3.6%)

Equity Markets:

• Japan's Nikkei: -2.1%
• Hong Kong's Hang Seng: +1.5%
• China's Shanghai Composite: -1.4%
• India's Sensex: +0.4%
• South Korea's Kospi: -3.5%
• Australia's All Ordinaries: +0.1%

European markets trade mixed, with technology weakness weighing on continental markets while energy and health care names support the U.K. market.

In news:

• AstraZeneca (AZN 183.60, +9.20, +5.28%) advanced after better-than-expected results, while Bayer rose following a favorable verdict in a Roundup lawsuit.
• Technology-related names, including Infineon and STMicroelectronics, traded lower.

In economic data:

• Eurozone Q3 GDP +0.4% q/q (expected +0.2%; prior +0.6%) and +1.3% yr/yr (expected +1.1%; prior +1.2%); September Unemployment Rate 6.5% (expected 6.4%; prior 6.5%)
• Germany's Q3 GDP +0.2% q/q (expected +0.1%; prior +0.3%) and +1.2% yr/yr (expected +1.1%; prior +1.0%); October Unemployment Rate 6.4% (expected 6.4%; prior 6.4%) and Unemployment Change +4K (expected +5K; prior +12K)
• France's Q3 GDP -0.1% q/q (expected +0.1%; prior 0.0%) and -0.1% yr/yr (expected +0.3%; prior +0.5%); October CPI +3.4% yr/yr (expected +3.2%; prior +3.1%) and +0.4% m/m (expected +0.2%; prior -0.3%)
• Italy's Q3 GDP 0.0% q/q (expected +0.1%; prior +0.2%) and +0.8% yr/yr (expected +0.9%; prior +1.0%); October CPI +5.4% yr/yr (expected +4.6%; prior +4.2%) and +0.9% m/m (expected +0.1%; prior +0.7%)
• Spain's Q3 GDP +0.6% q/q (expected +0.6%; prior +0.7%) and +2.7% yr/yr (expected +2.7%; prior +2.6%); October CPI +4.9% yr/yr (expected +4.9%; prior +4.9%) U.K. October Nationwide HPI 0.0% m/m (expected -0.2%; prior -0.3%) and +0.5% yr/yr (expected +0.6%; prior +0.8%)

Equity Markets:

• STOXX Europe 600 : -0.2%
• Germany's DAX : -0.5%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +0.2%
• Italy's FTSE MIB : -0.7%
• Spain's IBEX 35 : -0.4%