The Nasdaq 100 index futures dropped 1.1%, while S&P 500 index futures declined 0.5%, amid divergent earnings reports from Tesla and Meta Platforms.
Tesla shares fell 3.3% in after-hours trading after the company lowered its capital expenditure forecast. In contrast, Meta Platforms’ stock rose 2.2% in after-hours trade following an upward revision to spending plans, signaling increased investment in artificial intelligence. Semiconductor equipment maker Lam Research Corp. saw its shares drop 7.4% in after-hours trading after reporting lower-than-expected earnings guidance.
In Asia, South Korea’s KOSPI—the barometer for AI-related trading—declined 2.2%, with chip giants Samsung Electronics and SK Hynix both posting losses.
Despite market expectations that the Federal Reserve will maintain stable interest rates in the near term, gold prices fell as escalating hostilities in the Middle East heightened inflation concerns.
Gold traded around $4,090 per ounce, hitting a one-week low. Oil prices rose amid growing worries over potential escalation after the U.S. State Department ordered non-emergency U.S. government employees and their families to evacuate Saudi Arabia. Additionally, two people were killed in a drone attack on an oil field operated by Saudi Aramco.
U.S. Treasury yields rose across all maturities, pushing bond prices down, with the two-year yield reaching a one-week high. Elevated borrowing costs weigh negatively on gold, which does not generate interest income.
Since Federal Reserve Chair Kevin Warsh’s remarks last Friday, traders attempting to anticipate the Fed’s next move have gained little new insight. His comments did not dispel market expectations that the central bank will hold rates steady at next week’s meeting. Recent data has shown signs of economic weakness, including a decline in housing starts in September and a record low in existing home inventory. Currently, the probability of a 25-basis-point rate hike is less than one-sixth.
Nevertheless, inflation remains well above the central bank’s 2% target, and persistently high energy costs increase the likelihood that policymakers may need further monetary adjustments to curb price pressures. Traders broadly expect the Fed to raise rates at its December meeting.
Plugin Case Analysis
Gold: The overnight rebound from 4,127 was met with resistance at 4,141, prompting a pullback. Today we continue monitoring the continuation of the expanding consolidation pattern, watching whether a V-shaped reversal emerges after liquidity clears the yellow zone.
(Gold 15-minute chart)
Nasdaq: Prices failed to reclaim and hold the key resistance area at 29,900, triggering an expanding corrective consolidation. Today, focus on potential bounce signals after the 29,450 zone absorbs liquidity.
(Nasdaq 15-minute chart)
Crude Oil: The critical pivot zone between bullish and bearish momentum currently lies between 99.50 and 99.80. A successful retest and hold could lead to further gains; if resistance holds and prices retreat, a correction may follow. It is advisable to wait and observe how this level performs before making any trading decisions.
(Crude Oil 15-minute chart)
