Wall Street slips as megacap tech sells off
MUMBAI, 30 COTOBER: US stocks fell as a sharp selloff in megacap technology weighed on sentiment. The Nasdaq Composite lost 1.4% to 26,185, the S&P 500 fell 0.3% to 7,720 and the Dow slipped 0.25% to 52,343. Breadth was positive, with about 400 S&P 500 members rising as capital rotated out of tech, even as semiconductors dropped 1.4%. Nasdaq 100 futures were down roughly 2% overnight.
Alphabet fell about 12.6%, its worst day since its IPO, erasing roughly $480 billion in market value. Ad and search growth disappointed, and the company guided 2026 capex to $195-205 billion, with more to come in 2027. Amazon dropped about 7% in extended trading on higher spending, slowing online growth and negative free cash flow. Intel plunged about 23% on a weak Q4 revenue forecast and soft PC demand. Together, the results renewed Wall Street’s doubts about near-term returns on AI investment.
The Federal Reserve held its target range at 3.75-4.00% on a 10-2 vote, with both dissenters favouring a hike. Policymakers said incoming inflation and jobs data will shape the December decision.
The Bank of Japan concludes its two-day meeting today and widely expected to hold at 1.25%.
US Q3 GDP grew 3.4% annualised, beating expectations on resilient consumer demand. Inflation remains sticky, though: September PCE rose 3.6% year over year, and the core measure gained 0.5% on the month. Markets price a 75-80% chance of a December hike.
Crude rose about 1.75% to $103.5 as Gulf and Hormuz risks persisted, adding to inflation worries and weighing on equities. The euro held near $1.12 as the ECB kept rates at 2.5%
The Indian rupee depreciated 4 paise to close at 95.26. After declining in the morning session, the rupee recovered, supported by foreign institutional buying in domestic equities. Additional support from central bank intervention and softer crude oil prices benefited both the rupee and the bond market.
After two sessions of declines, Nifty posted healthy gains of 237 points to close at 22,936 yesterday.
Nifty finally broke out of the narrow 22,400–22,800 range that had capped price action over the past five sessions. The previous swing high and the 50-DEMA converge near 23,175, making that a key resistance zone. Support has shifted higher to 22,650; as long as the index holds above this level, traders should retain a positive bias.
Indian equities look set for a subdued start in the wake of weak global triggers.
REPORT BY: Mr. Devarsh Vakil, Head of Prime Research at HDFC Securities
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)
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