Wall Street Rides Big Tech Earnings Rollercoaster 31/10/2025

HOT stories for today

Market wrap:

• U.S. equities slipped Thursday, with all three major benchmarks finishing in the red after a subdued session. The Dow Jones Industrial Average edged down 0.2%, while the S&P 500 and Nasdaq Composite retreated 0.99% and 1.58%, respectively, pressured by declines in heavyweight tech names, including Meta, Microsoft, and Nvidia, amid renewed concerns about surging AI-related spending. Meta posted its steepest one-day drop in three years. Markets found some relief late Thursday after Presidents Donald Trump and Xi Jinping agreed to a one-year trade truce during talks in South Korea, easing investor jitters over the risk of a full-blown trade confrontation.
• Futures climbed in overnight trading as investors digested earnings from Big Tech heavyweights Apple and Amazon, which capped a pivotal week for the sector. Amazon shares surged more than 13% after the company reported a 20% jump in third-quarter cloud revenue, topping Wall Street forecasts. Apple gained roughly 3% following better-than-expected fiscal fourth-quarter results and upbeat guidance for its December quarter. In Asia, Japan’s benchmark indexes hit record highs as regional markets advanced on optimism surrounding the Trump-Xi accord. Streaming giant Netflix rallied over 3% after unveiling a 10-for-1 stock split. Despite Thursday’s pullback, U.S. equities remain on pace to close out both the week and the month higher. The S&P 500 is up 0.45% for the week, while the Nasdaq and Dow have advanced about 1.6% and 0.7%, respectively.

Powell’s Hawkish Tone sends Treasury Yields higher

• U.S. Treasurys slid Thursday after Fed Chair Jerome Powell signaled deep divisions over the path of rate cuts, sending yields higher despite a fresh quarter-point reduction in the benchmark rate. The 10-year yield climbed to 4.09%, extending its most significant jump since July. Powell said another cut in December was “far” from certain, a message investors took as intentionally hawkish. “The move reflects Powell’s effort to push back on expectations for rapid easing,” said Matt Bush of Guggenheim Investments. The Fed remains split between concerns over sticky inflation and signs of a cooling labor market.
• The debate matters for broader borrowing costs, as 10-year yields anchor everything from mortgages to corporate debt. Bond ETFs tumbled on Wednesday: Vanguard’s Total Bond Market Fund dropped 0.5%, while long-term Treasurys fell nearly 1%. The two-year yield rose to 3.61%. Traders still see a roughly 73% chance of a December cut, CME FedWatch data show, though odds eased after Powell’s remarks. BlackRock’s Rick Rieder said the Fed may pause until early next year. Inflation remains stuck near 3%, keeping policymakers cautious. Powell warned tariffs could cause a “one-time” price bump but vowed to prevent it from becoming persistent.

Stocks on the move:
 

• Apple (AAPL): Shares rose 4% after the iPhone maker beat fiscal Q4 estimates and issued an upbeat December-quarter outlook driven by iPhone 17 demand. EPS came in at $1.85 on $102.47 billion in revenue, topping LSEG forecasts for $1.77 and $102.24 billion.
• Cloudflare (NET): Jumped more than 8% after reporting adjusted EPS of $0.27 on $562 million in revenue, beating FactSet estimates of $0.23 and $544.6 million.
• Amazon (AMZN): Surged 14% after better-than-expected quarterly results, led by strong cloud growth. EPS was $1.95 on $180.17 billion in revenue, ahead of LSEG estimates of $1.57 and $177.75 billion.
• Netflix (NFLX): Gained 3% after announcing a 10-for-1 stock split to make shares more accessible to retail investors.
• Twilio (TWLO): Rose 10% after posting adjusted EPS of $1.25 on $1.3 billion in revenue, topping FactSet forecasts of $1.08 and $1.25 billion.
• Coinbase (COIN): Added 2% after beating Q3 estimates with EPS of $1.50 on $1.87 billion in revenue, versus LSEG projections of $1.10 and $1.8 billion.

Watchlist: AMZN, AAPL, NET, COIN, TEAM, ROKU, FSLR, RDDT, NVDA

Key Economic Events Today:

EST time

09:30 am: USD FOMC Member Logan Speaks
10:00 am: USD Chicago PMI
12:00 pm: USD FOMC Member Bostic, Hammack Speaks


Earnings


BMO (Before Market Open): Exxon Mobil (XOM), AbbVie Inc. (ABBV), Chevron (CVS), Aon Plc. (AON), Linde (LIN)



The TEFS Analyst team wishes you a successful day!