Overnight, the entire US stock market fell. Popular Chinese concept stocks generally fell.
Chip stocks generally fell
The three major indexes of the US stock market collectively closed down, with the Dow Jones Industrial Average falling 0.22%, the Nasdaq falling 0.56%, and the S&P 500 index falling 0.33%. The market is waiting for more financial reports from technology companies and paying attention to the approaching US presidential election. The ADP employment figures in the United States exceeded expectations in October, and the GDP for the third quarter fell short of expectations.
Chip stocks generally fell, with AMD falling more than 10%, Qualcomm and ASML falling more than 4%, Micron Technology falling nearly 4%, Intel falling more than 2%, and Nvidia and TSMC falling more than 1%.
After the stock market closed on October 29th, chip manufacturer AMD released its Q3 2024 financial report. The company's third quarter performance met market expectations, with revenue reaching 6.82 billion US dollars, an increase of 18% year-on-year, exceeding LSEG's expected 6.71 billion US dollars. Net profit reached 771 million US dollars, a significant increase of 158% year-on-year, and gross profit margin reached 50%. However, the company's revenue forecast for the fourth quarter did not meet market expectations. The company's forecast is about 7.5 billion US dollars (fluctuating by 300 million US dollars), with a year-on-year growth of nearly 22%, slightly lower than the market average expectation of 7.55 billion US dollars.
Trump concept stocks weakened, with Trump Media Technology Group falling over 22%, Phunware falling over 14%, and Rumble falling over 8%.
Audit firm Ernst&Young resigns, causing Supermicro Computer to plummet by 32.67%.
Google rose nearly 3%, while cloud business revenue increased by 35% year-on-year. Lilly fell more than 6% and its third quarter revenue fell short of expectations.
Microsoft's stock price fell more than 4% in after hours trading after the software manufacturer released a disappointing second quarter outlook, stating that cloud revenue growth will slow down, profit margins will decline, and expenses will increase.
Microsoft executives stated during a conference call on Wednesday after releasing their first quarter results that revenue from the closely monitored Azure cloud computing business is expected to grow by 31% to 32% in the second quarter. After adjusting for exchange rate fluctuations, Azure's first quarter revenue increased by 34%, slightly slowing down from the previous quarter's 35% growth rate.
In addition to the slowdown in Azure growth, Chief Financial Officer Amy Hood stated that she expects the profit margin of commercial cloud to narrow and reiterated that capital expenditures will increase as the company expands its AI services. Thanks to the company's strong revenue and profit growth in the first quarter, Microsoft's stock rose to $444.95 in after hours trading. The stock closed at $432.53 on Wednesday.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling 0.96%.
NIO fell over 4%, Pinduoduo fell over 3%, JD.com, Vipshop, Xiaopeng Motors, and Futu Holdings fell over 2%, NetEase, Baidu, Manbang, Weibo, Tencent Music, and Alibaba fell over 1%, and iQiyi fell slightly. Ideal cars and Bilibili have risen by over 1%.
The FTSE China A50 futures index closed up 0.29% at 13330 points in late trading.
International precious metal futures closed with mixed gains and losses, with COMEX gold futures rising 0.65% to $2799.1 per ounce, continuing to reach a historic high. COMEX silver futures fell 1.47% to $33.935 per ounce.
The GDP of the United States grew by 2.8% in the third quarter
In terms of economic data, the US GDP grew by 2.8% in the third quarter, with an estimated 2.9%. Analysts say that this report shows that the US economy grew at a strong pace in the third quarter, with residents and businesses demonstrating resilience in the face of global headwinds and uncertainty before the November election.
According to preliminary estimates released by the US Department of Labor on Wednesday, adjusted for inflation, the US gross domestic product grew at an annualized rate of 2.8% in the third quarter and 3% in the second quarter. The median forecast of surveyed economists is 2.9%.
Consumer spending, which accounts for the largest proportion of economic activity, increased by 3.7%, the largest growth rate since early 2023.
The ADP employment figures in the United States increased by 233000 in October, exceeding expectations. The estimated increase is 111000 people, compared to the previous increase of 143000 people.
ADP Private Employment Agency reported on Wednesday that despite the devastating storm that hit the southeastern United States and severely disrupted labor supply, private sector job creation reached its highest level in over a year in October.
ADP Chief Economist Nela Richardson said, "Even with the recovery after the hurricane, employment growth remained strong in October. As the year comes to an end, recruitment in the United States has proven to be strong and has broad resilience
These numbers are contrary to people's expectations of an economic slowdown in October, however, some economists have hinted that the October report will be an outlier that Fed officials are unlikely to consider at next week's meeting.
Another data indicates that the initial value of the core PCE price index for the third quarter of the United States is 2.2%, with an expected value of 2.1%, compared to the previous value of 2.8%.
The market is still paying attention to the approaching US presidential election.
US Vice President Kamala Harris said on Wednesday that she "strongly" disagrees with President Joe Biden's statement that voters who support Trump are all "garbage".
Biden's remarks were seen as an insult to Donald Trump supporters and were seized upon by the Republican Party. This shows that she is trying to stay away from a brewing controversy that could weaken her momentum in the final week of the election.
Goldman Sachs Group stated that global investors have overestimated the risk of financial markets being plunged into uncertainty due to the "difficult delivery" of the US presidential election results next week.
Goldman Sachs analysts Michael Cahill, Lexi Kanter, and Alec Phillips wrote in a report, "While we recognize the possibility of election uncertainty risks, we believe that market participants seem to have overestimated the likelihood of delayed election results
UBS warns of unfavorable factors such as the US election and declining interest revenue. The bank stated that although the prospect of a soft landing for the US economy is promising, the November 5th US election may trigger market volatility and have unpredictable effects on investor sentiment; The macroeconomic outlook for other regions of the world is still shrouded in clouds.