Big Tech Turmoil Sends Nasdaq to a Steep Weekly Drop

Cooling crude prices, growing speculation about Anthropic's initial public offering (IPO), and stabilizing AI stocks kicked off the final week of October on a high note. Gains in tech continued through Tuesday as investors turned their focus to the Federal Reserve Open Committee (FOMC) meeting, which resulted in rates remaining steady, as expected.

This optimism was quickly extinguished, however, as Alphabet (GOOGL) plunged following its earnings report, sparking a broader market selloff. Weakness in Intel (INTC) and Amazon.com (AMZN) added to the pressure as investors continued rotating away from AI stocks. The Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) were all headed for steep weekly losses Friday, though the Dow remained on track to finish October higher, bucking the broader market's monthly decline. 

Another Round of Earnings Take the Stage

Driving market sentiment this week has been a deluge of Big Tech earnings, most of which underperformed expectations. Leading the pack was Alphabet (GOOGL), triggering the aforementioned historic selloff. Vertiv (VRT) surged after its impressive earnings, however, as did SoFi Technologies (SOFI) and United Parcel Service (UPS). Investors prepped for Intel (INTC) earnings ahead of its brutal post-earnings decline, while traders mostly ignored an upbeat report from Microsoft (MSFT).

Other notable reports also entered the confessional, including big wigs Chevron (CVX) and Exxon Mobil (XOM), Enphase Energy (ENPH), and even Stellantis (STLA), which saw its turnaround efforts come to fruition. Coca-Cola (KO) slid due to slowing U.S. demand, while Verizon (VZ) stock fell after its revenue miss. Chipotle Mexican Grill (CMG) and Reddit (RDDT) also drew attention after earnings.

More Stocks Making Noise This Week

Meta Platforms (META) kicked off the week with news of another AI expansion. Meanwhile, we took a closer look at how SpaceX (SPCX) managed to avoid the broader-market tech chop and how Anthropic financing triggered a Broadcom (AVGO) stock surge.

We also noted what makes Newmont (NEM) a great bullish buy right now, as well as a bear signal you should watch on Super Micro Computer (SMCI). Don't overlook these 15 stocks that are ripe for a short squeeze either, while Elon Musk's Tesla (TSLA) could also be due for gains.

November Kicks Off With Apple Earnings

Investors will have a busy slate of economic data to digest next week as stocks break into the first week of November. Manufacturing activity, labor market updates, and consumer sentiment are among the key releases, as well as Friday's October employment report. The earnings calendar is stacked with a number of reports scheduled to release, featuring the likes of Advanced Micro Devices (AMD), Apple (AAPL), Cardinal Health (CAH), Super Micro Computer (SMCI) and others.

Don't miss out on Schaeffer's Senior Quantitative Analyst Rocky White's take on how a changing range on the Cboe Volatility Index (VIX) could impact SPDR S&P 500 ETF Trust (SPY) returns, as well as Senior V.P. of Research Todd Salamone's insight on why bulls may benefit from buying SPX puts.