Opening Bell - Morning Commentary
U.S. Stocks Move Lower As Meta, Microsoft Tumble
The weakness on Wall Street came amid an adverse reaction to earnings reports from tech giants Meta Platforms and Microsoft.
Facebook parent Meta plunged by 11.3 % to a five-month closing low after reporting better-than-expected third-quarter results but forecasting higher AI spending.
Software giant Microsoft also tumbled by 2.9% after reporting fiscal first-quarter results that exceeded estimates but also said capital spending growth will accelerate this fiscal year.
Apple’s shares rose 3% post-market on upbeat holiday quarter guidance and record iPhone sales. Amazon jumped more than 13% on robust cloud division growth, helping to spur a post-close rebound in futures for both S&P 500 and NASDAQ.
China's Xi Jinping will take centre stage at an annual gathering of Pacific Rim leaders in South Korea today, holding talks with Canadian, Japanese and Thai counterparts after securing a fragile trade truce with U.S. President Donald Trump.
The U.S. and China agreed on Thursday to pause tit-for-tat fees on each other's ships, which had become a major irritant in the broader trade war between the world's two largest economies and pushed up ocean freight costs.
The move provides a 12-month reprieve on an estimated $3.2 billion annually in fees for large Chinese-built vessels sailing to U.S. ports and was among the trade deals reached in South Korea by U.S. President Donald Trump and Chinese President Xi Jinping.
The U.S. Federal Reserve has moved back into line with other major rate setters after it cut rates by a quarter point on Wednesday but pushed back against market bets that it would keep going as the Washington shutdown fogs up its forecasting lens.
The Bank of Japan and European Central Bank left rates unchanged on Thursday.
China's factory activity shrank for a seventh month in October, an official survey showed on Friday, keeping alive calls for further stimulus to boost domestic demand, with efforts to ship goods abroad merely exporting price wars.
The U.S. dollar held its ground in early Asian trade on Friday after reaching a three-month high as traders processed mixed signals from this week's central bank decisions, tech sector earnings and a tentative U.S.-China tariff truce.
After opening lower by 70 points, Nifty continued its downward journey throughout the day and finally ended 176 points, or 0.68%, lower at 25877 yesterday.
Nifty now appears to be coiling within a defined range, with resistance capped near 26,104 and immediate support around 25,800. A sustained breakout or breakdown beyond this band will be crucial in determining Nifty’s next directional move.
Indian equities are poised to open flat to marginally weaker, weighed down by lacklustre global cues.
