Although AMD reported better-than-expected earnings overnight, as midterm election results were released, the Democrats gained the upper hand, raising market concerns that stricter regulation of AI could follow. The Nasdaq 100 Index fell further to around 27,600 at Tuesday’s close, after rebounding above 28,300 at its overnight high.
AMD (Advanced Micro Devices Inc.) is Nvidia Corp.’s main challenger in the artificial intelligence chip sector. The company’s sales forecast far exceeded analysts’ expectations, indicating very strong demand for data center processors.
The chipmaker said in a statement on Tuesday that fourth-quarter revenue is expected to be $17 billion, plus or minus 3%. This figure easily beat the average analyst estimate of $16.3 billion, pushing the company’s shares up about 7% in late trading.
The outlook provided fresh evidence that spending in the AI sector is sustainable, easing the concerns of anxious investors.
According to Decision Desk HQ, Democrats are expected to regain control of the House of Representatives in Tuesday’s midterm elections, marking the first real check on President Donald Trump’s power in Washington since his return to the White House two years ago.
The Democrats appear to be riding a wave of voter dissatisfaction driven by rising living costs, which has been further intensified by the unpopular Iran war. The Republicans, meanwhile, have been trying to distance themselves from the president, whose approval ratings have fallen to historic lows in the weeks before the election as he urged supporters to vote as if he were running.
Plugin Case Study
Gold: After breaking below the yellow zone in our plugin alert overnight, gold still staged a V-shaped rebound. The operation we highlighted with the yellow block was to place a buy stop order at the upper limit after the price broke below the lower limit of the block; if the block appeared above the price, the opposite would apply. In live trading, this can deliver a 5:1 risk-reward ratio. Today, we will continue to watch whether the price can break higher and complete its push toward 4,000, while also keeping in mind the possibility of a rebound after the yellow zone sweeps liquidity below。
(Gold 15-minute chart)
Nasdaq: Current news suggests the Democrats are very likely to win the House. If they also win the Senate, prices may fall further to new lows. We recommend waiting for the results to be finalized before considering the direction of any trade, and waiting for the risk event to clear。
(Nasdaq 15-minute chart)
Crude Oil: After testing the yellow zone in our plugin alert yesterday, prices fell sharply to around 94. Although recent news has been relatively complex, we expect that after three consecutive days of sharp declines, crude oil prices may enter a period of consolidation today. For now, we will wait one day for more signals.
(Crude Oil 15-minute chart)
Key Financial Data and Events to Watch Today:
18:00: The eurozone will release October CPI data. The market expects an annual rate of 4%, compared with 3.80% previously; the market expects a monthly rate of 0.30%, compared with 0.60% previously.
21:15: The United States will release October ADP employment change, with the market expecting 69,000, compared with 90,000 previously.
21:30: The U.S. Treasury will release its quarterly refunding announcement.
22:45: The United States will release the final October S&P Global Services PMI, compared with 57.9 previously.
23:00: The United States will release the October ISM Non-Manufacturing PMI, with the market expecting 54.8, compared with 54.9 previously.
At 23:30, the U.S. will release EIA crude oil inventories, Cushing crude oil inventories, and strategic petroleum reserve inventories for the week ending October 30.
At 05:00 the next day, Qualcomm will report earnings after the U.S. market close.
