US market recap
US equities surrendered strong early gains on Thursday, closing near session lows as sentiment deteriorated throughout the day. The Nasdaq fell more than 2%, the S&P 500 declined about 1.6%, and the Dow Jones Industrial Average slipped 0.8%.
This reversal came despite robust quarterly results from Nvidia, which initially lifted market confidence. However, a sharp pullback in bitcoin, a rise in Oracle credit default swaps, and heightened volatility contributed to the weaker tone.
Most sectors finished lower, led by technology, consumer discretionary, and materials, while consumer staples was the only gainer.
Labour market signals
Market pressure intensified after a mixed US September jobs report signalled a cooling labour market but did little to clarify the outlook for December interest rate decisions.
- Nonfarm payrolls rose more than expected
- Unemployment rate edged higher
Treasury yields declined, and the volatility index (VIX) jumped to its highest level since April, reflecting growing uncertainty. Major equity names including Datadog, Micron, Boeing, and Nvidia were among the steepest fallers on the day.
Asian market performance
Asian equities fell sharply on Friday as weakness in global technology shares and concerns over stretched artificial intelligence valuations weighed on sentiment after a muted response to Nvidia’s results.
Tech-heavy markets in South Korea, Japan, and Hong Kong led declines, while regional shares also weakened on sticky Japanese inflation and fading expectations for a US rate cut.
European market highlights
European equities closed higher on Thursday, supported by strong Nvidia earnings. Below are the key movements in major indices and sectors:
- Germany’s DAX rose 0.6%
- France’s CAC 40 gained 0.3%
Tech names like Infineon and ASML advanced on robust demand, while Schneider Electric and Siemens Energy rose on AI and industrial optimism. BNP Paribas jumped after raising capital targets.
Currency and commodities
The US dollar steadied after sharp overnight gains, supported by hawkish Fed minutes that dampened hopes of a December rate cut.
- Dollar Index held around 100.150
- EUR/USD slipped 0.1% to 1.1525
Oil prices fell sharply in Asian trade this morning, heading for a weekly decline as investors weighed a US-Russia-backed Ukraine peace proposal and looming sanctions on Russian oil giants. Brent and WTI lost around 1%, pressured by resumed Russian exports, broader supply concerns, and weaker demand support following stronger-than-expected US jobs data.
Equities on the move
Several companies experienced notable share price moves driven by analyst ratings, quarterly earnings, or strategic announcements.
- Walmart raised its annual forecasts after strong Q3 results, driven by surging online sales and growth among higher-income households. U.S. comparable sales rose 4.5%, revenue climbed 5.8% to $179.5 billion, and adjusted EPS is now $2.58–$2.63. The company will move its listing to Nasdaq, reflecting its AI-driven, tech-focused strategy.
- Siemens Energy outlined its turnaround plan for Siemens Gamesa, targeting breakeven in 2026 and strong cash positivity by 2028. Plans include a €6 billion share buyback programme and selective acquisitions.
- IBM and Cisco announced plans to link quantum computers over long distances by 2030, aiming to enable a quantum internet.
- Gap exceeded Wall Street expectations for Q3 comparable sales, driven by strong marketing and demand for Old Navy and Banana Republic apparel.
- Intuit forecast second-quarter revenue growth of 14–15%, above Wall Street estimates, driven by strong demand for its AI-powered tools.
- UBS remains bullish on AI, expecting global AI capex to rise 35% to $571 billion in 2026 and reach $1.3 trillion by 2030.
- Morgan Stanley rates Amazon a top pick, seeing 40%+ upside from AWS momentum into 2026.
- Piper Sandler reaffirmed an Overweight rating on Tesla with a $500 target, citing its full self-driving (FSD) software and robo-taxi potential.
- UBS raised its global high-bandwidth memory (HBM) demand outlook for 2025 and 2026, citing stronger Nvidia and AMD procurement.
- Wedbush analyst Daniel Ives says the AI boom is not a bubble but the start of a decade-long transformation, with Nvidia central to the AI economy.
Upcoming data and events
Today’s key releases and events will provide further insight into global economic conditions:
- US manufacturing and services PMI flash readings
- Michigan consumer sentiment and inflation expectations
- UK retail sales and PMI readings
- Germany’s HCOB manufacturing PMI flash
No major companies are reporting earnings, while US Federal Reserve speeches may influence markets.
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