- The Nasdaq-100 is down 2% for the week as selling in AI names intensified.
- The Fed left rates unchanged, and markets see a 75% chance of a December hike.
- Q3 real GDP grew at a 3.4% annual pace, led by consumer spending and AI capex, while headline PCE inflation rose to 3.6% YOY.
- Mixed AI-trade news: MSFT beat on earnings with cloud growth near 50% YOY, while GOOG and AMZN missed and INTC's Q4 revenue projection disappointed.
- Bloomberg described a bruising technology-share selloff that fueled concern the AI frenzy might be overblown.
- The Nasdaq-100 is on pace for 49% YOY Q3 earnings growth despite the weekly decline.
- 10-year Treasury yields fell below 4.95% on safe-haven demand as AI selling weighed on equities.
- Next week's catalysts include AAPL and AMD earnings, JOLTS, Productivity, Jobless Claims, and October Nonfarm Jobs.
Quotes
“The news on the AI trade was decidedly mixed”