US equity benchmarks slid to one-month lows—S&P 500 -0.51%, Dow -0.86% and Nasdaq 100 -0.90%—as tech weakness (Amazon and Microsoft down after Rothschild & Co Redburn downgrades) and a Home Depot profit-guidance cut (shares down >3%) pressured the market; chip stocks broadly underperformed and Nvidia’s upcoming results are in focus for the AI narrative. Signs of softening labor market data (ADP implied employers shed ~2,500 jobs/week) and lower inflation breakevens pushed the 10-year Treasury yield to ~4.10%, lifting safe-haven demand and leaving markets pricing roughly a 48% chance of a 25bp Fed cut in December. Q3 corporate earnings remain a bright spot—82% of S&P reporters beat estimates with aggregate earnings up ~14.6% y/y—while a heavy slate of delayed US economic releases this week could drive further volatility and reassessments of growth and policy expectations.
US equity benchmarks extended Monday’s slide with the S&P 500 down -0.51%, the Dow -0.86% and the Nasdaq 100 -0.90%, each at one-month lows as technology names and discretionary exposure weigh on the market. Amazon and Microsoft fell more than -1% after Rothschild & Co Redburn downgrades, chip names broadly declined and Home Depot led losers (down >3%) after Q3 comps rose only +0.2% versus a +1.36% consensus and management trimmed full-year operating margin guidance to 12.6% from 13.0% (consensus 13.3%). Q3 corporate earnings remain a constructive backdrop—82% of reporting S&P companies beat and aggregate earnings rose +14.6% y/y versus +7.2% expected—but positive earnings are being offset by guidance misses and valuation pressure in tech. Fixed-income moves signal a growth-reassessment: the 10-year T-note yield fell about 4.3 basis points to 4.096% after ADP data showed employers shed ~2,500 jobs per week (four weeks to Nov. 1) and the 10-year breakeven inflation rate slid to 2.272%. Markets are pricing roughly a 48% chance of a 25bp Fed cut in December, supporting safe-haven demand and lower yields even as economic releases resume. A heavy calendar of delayed US data plus upcoming corporate reports (Nvidia, Walmart, Target) creates near-term volatility risk as investors reprice growth, inflation and policy odds. International weakness (Euro Stoxx -1.72%, Nikkei -3.22%) and isolated company-specific developments (Cloudflare outage, Nuvalent offering) increase idiosyncratic risk and argue for selective exposure to earnings surprise winners and higher-quality defensives.
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Overall Sentiment
moderately negative
Sentiment Score
-0.45
Ticker Sentiment
