Market Summary

U.S. equities closed out a turbulent week with sharp losses on Friday, October 30, as a deepening correction in AI-related stocks spread across the broader market. With no trading session on Halloween (Saturday, October 31), this report reflects Friday’s closing data and the weekly wrap heading into next week. The S&P 500 slid 140.32 points (-1.82%) to 7580.14, the Nasdaq Composite dropped 747.73 points (-2.85%) to 25457.43, and the DJIA fell 572.25 points (-1.09%) to 51770.52. The Nasdaq’s retreat extended its pullback from its October peak near 27,700 to roughly 9.0%, closing decisively below its 50-day moving average (~26,570).

The session’s dominant theme was a semiconductor rout: the PHLX Semiconductor Index plunged 7.3% and closed below its 200-day moving average as Intel’s (INTC) disappointing guidance reverberated through the chip and PC supply chain. Mega-cap growth names continued to struggle following earnings-driven concerns from Amazon (AMZN) and Alphabet (GOOG), reinforcing investor skepticism about the returns on massive AI infrastructure spending. Unlike Thursday’s session, where broad strength outside mega-cap tech offset index-level losses, Friday’s selling was considerably more widespread — even the S&P 500 Equal Weighted Index fell 0.8%, and small/mid-caps saw meaningful selling pressure.

Defensive sectors provided a partial offset. Energy (+1.9%) led thanks to firm crude prices and a strong Chevron (CVX) earnings reaction, while Consumer Staples (+1.4%), Utilities (+0.6%), and Health Care (+0.4%) also advanced on earnings strength from names like Regeneron (REGN) and Eli Lilly (LLY). Treasuries caught a safe-haven bid despite elevated oil prices, with yields across the curve now down roughly 40 basis points from their October highs. For the week, the S&P 500 (-0.6%), Nasdaq (-2.0%), and DJIA (-0.9%) all finished lower even as the Russell 2000 and S&P Mid Cap 400 each gained 1.3%, underscoring a stark divergence between mega-cap tech and the broader market.

Market Snapshot

Index	Level	Change	% Change
Dow Jones	51,770.52	-572.25	-1.09%
Nasdaq Composite	25,457.43	-747.73	-2.85%
S&P 500	7,580.14	-140.32	-1.82%

Breadth (NYSE): Advancers 998, Decliners 1,715, Volume 1.57 bln
Breadth (Nasdaq): Advancers 1,091, Decliners 3,366, Volume 9.04 bln

WaveFinder Market Breadth (as of 10/30):

Primary Sentiment: Bearish | 4% Sentiment: Very Bearish | 40 SMA Sentiment: Neutral
Primary Bulls/Bears: 790 / 1,427
4% Bulls/Bears: 109 / 741
9-Month Bulls/Bears: 11 / 79 (Bull Follow-Through: 30.43%)
% of Stocks Above 20-day SMA: 56%
% of Stocks Above 40-day SMA: 49.72%

Breadth metrics confirm the deteriorating technical backdrop, with bearish sentiment readings and just under half of stocks holding above their 40-day moving average.

Sector Performance

Ranked by Friday’s session performance (Briefing.com):

1. Energy +1.9% — supported by firm crude prices and strong Chevron (CVX) earnings
2. Consumer Staples +1.4% — Walmart, Coca-Cola, Mondelez led gains
3. Utilities +0.6%
4. Health Care +0.4% — boosted by Regeneron and Eli Lilly earnings reactions
5. Real Estate +0.2%
6. Consumer Discretionary -0.9% — pressured by Amazon’s post-earnings decline
7. Communication Services -1.1% — Alphabet and Reddit weighed on the sector
8. Industrials -1.6% — weakness spread to AI infrastructure-related names
9. Financials — categorized “weak” by Briefing.com (no specific % disclosed)
10. Information Technology -4.3% — worst performer by a wide margin on the semiconductor rout

WaveFinder Sector ATR (Volatility): Utilities (3.46%, rising, P100) and Materials (3.05%, rising, P100) show the highest/most elevated volatility readings, followed by Consumer Staples (2.63%, flat, P95) and Health Care (2.36%, flat, P58). Technology volatility is notably low on a percentile basis (-1.92%, flat, P5) despite the magnitude of Friday’s decline, while Consumer Discretionary (1.62%, rising, P95) and Financials (-0.86%, rising, P95) also sit at elevated percentile ranks.

Key Earnings & Movers

Intel (INTC) $65.76, -26.31 (-28.58%) — Disappointing Q4 guidance citing weakening PC demand, rising memory prices, and supply constraints limiting data center fulfillment.
HP Inc. (HPQ) $28.78, -3.05 (-9.58%) — Dragged down by Intel’s weak PC demand commentary.
Dell (DELL) $424.16, -51.35 (-10.80%) — Also weighed by Intel’s outlook.
Sandisk (SNDK) $1,151.43, -178.62 (-13.43%) — Beat Q1 estimates but modest Q2 revenue guidance and seasonal caution overshadowed strong Datacenter growth.
NVIDIA (NVDA) $204.78, -8.88 (-4.16%) — Retreated on broader AI-trade concerns.
Amazon (AMZN) $240.35, -3.44 (-1.41%) — Earnings miss, negative free cash flow despite AWS acceleration; 2027 capex plans raised investor concern.
Alphabet (GOOG) $278.22, -4.10 (-1.45%) — Extended post-earnings retreat.
Reddit (RDDT) $91.67, -37.93 (-29.27%) — Sharp earnings-driven decline.
Chevron (CVX) $235.48, +4.02 (+1.74%) — Better-than-expected earnings.
Walmart (WMT) $123.51, +2.26 (+1.86%); Coca-Cola (KO) $94.08, +1.26 (+1.36%); Mondelez (MDLZ) $64.92, +2.39 (+3.82%) — Defensive standouts.
Regeneron (REGN) $927.89, +109.12 (+13.33%); Eli Lilly (LLY) $1,417.54, +43.84 (+3.19%) — Strong earnings reactions lifted Health Care.
Starbucks (SBUX) — Q4 EPS $0.80 beat estimates; revenue $9.14 bln (-4.5% yr/yr), in line. Shares modestly lower on soft FY27 revenue guidance tied to the China licensing transition.

Stock Spotlight

Sandisk (SNDK) was one of Friday’s most dramatic movers, plunging 13.43% to $1,151.43 despite beating Q1 (Sep quarter) expectations. Adjusted EPS of $49.51 topped the $46.67 FactSet consensus, and revenue rose 23% sequentially to $11.03 bln versus $10.72 bln expected. Datacenter revenue surged 61% sequentially to $4.8 bln — now 43.5% of total revenue, up from just 11.7% a year ago — driven by enterprise SSD adoption and three U.S. hyperscaler customers. However, Consumer revenue fell 29% sequentially to $397 mln as higher pricing pressured demand, and management’s guidance for Q2 ($55-$57 adjusted EPS, $12.2-$12.6 bln revenue) implied only modest upside versus consensus.

The selloff was driven largely by management’s caution regarding fiscal Q3 seasonality, which overshadowed the company’s exceptional long-term positioning: eight NBM customers underpin $93.9 bln of minimum contracted revenue at floor pricing, covering roughly half of FY27 bits and two-thirds of FY28 bits, with 95% from investment-grade counterparties. Adjusted free cash flow rose 13% sequentially to $5.7 bln, and the company executed $5 bln in buybacks with $10.5 bln still authorized. An eight-for-one stock split takes effect November 20. Despite the strong contracted revenue base and datacenter momentum, investors focused on near-term seasonal softness and NAND consumer pricing pressure, consistent with the broader market’s skepticism toward AI-infrastructure-adjacent names this week.

Bond Market & Treasuries

Treasuries rallied for a fourth consecutive week, with yields across the curve now down approximately 40 basis points from their October highs. Friday’s session saw yields ease modestly even as crude oil pushed higher, with safe-haven demand driven by the tech-driven equity selloff.

Yield Levels (Friday close):

2-yr: 4.59% (-7 bps day / -9 bps week)
3-yr: 4.65% (-8 bps day / -10 bps week)
5-yr: 4.72% (-8 bps day / -9 bps week)
10-yr: 4.93% (-6 bps day / -6 bps week); intraday 4.929%, +15/32 price
30-yr: 5.31% (-2 bps day / -1 bp week)

Key drivers: St. Louis Fed President Musalem (non-voter) advocated for additional rate hikes at a measured pace. Persistent speculation about potential U.S. military action against Iran following Tuesday’s midterm elections kept a floor under oil prices, offering a partial counterweight to the Treasury rally. The U.S. Dollar Index slipped 0.2% to 101.89, trimming its weekly gain to just 0.1%.

Commodities

WTI Crude: $104.06/bbl, +2.0% (settled just above $104, up just under $1/bbl for the week)
Gold: $3,899.00/ozt, -3.3%
Copper: $6.48/lb, -1.8%
(Silver data not available in source material)

Crude strength reflected ongoing geopolitical risk premium tied to Iran-related speculation, while gold’s sharp decline came amid the broader risk-off/safe-haven rotation into Treasuries rather than precious metals.

Overseas Markets

Asia: Losses were steep ahead of the U.S. selloff, with South Korea down 3.5% and Japan down 2.1% on Friday as tech volatility overshadowed the Bank of Japan’s policy decision.

Bank of Japan held its policy rate at 1.25% as expected, but acknowledged its price target has been reached and announced ETF sales will increase to JPY860 billion from JPY330 billion starting in January.
Japan data: October Tokyo Core CPI +2.6% yr/yr (as expected; prior +2.7%); Tokyo CPI +2.8% yr/yr (vs. +3.3% expected); CPI ex-food/energy +2.4% yr/yr (vs. +2.7% expected); September Industrial Production +2.2% m/m (vs. +1.2% expected); Retail Sales +2.3% yr/yr (vs. +3.3% expected); Unemployment Rate 2.4% (vs. 2.5% expected).
South Korea data: September Industrial Production +9.0% m/m (prior -4.6%); Retail Sales +3.6% m/m (prior -1.8%).
Australia: Q3 PPI +1.1% q/q (vs. +1.0% expected), +3.6% yr/yr.

Europe: Mixed growth and inflation data.

Eurozone: Q3 GDP +0.4% q/q (vs. +0.2% expected), +1.3% yr/yr; September Unemployment Rate 6.5%.
Germany: Q3 GDP +0.2% q/q (vs. +0.1% expected); October Unemployment Rate 6.4%.
France: Q3 GDP -0.1% q/q (vs. +0.1% expected), contracting yr/yr -0.1%; October CPI accelerated to +3.4% yr/yr (vs. +3.2% expected).
Italy: Q3 GDP flat q/q; October CPI jumped to +5.4% yr/yr (vs. +4.6% expected).
Spain: Q3 GDP +0.6% q/q, in line; October CPI +4.9% yr/yr, in line.
U.K.: October Nationwide HPI flat m/m (vs. -0.2% expected).

Economic Data

Q3 Employment Cost Index: +0.8% (Briefing.com consensus +0.8%), following +0.9% in Q2. Wages/salaries +0.7%, benefits +0.9%. Civilian wages/salaries up 3.1% yr/yr — a pace that continues to undershoot inflation, feeding concerns about pressure on discretionary spending.
Chicago PMI: 55.3 in October, down from 58.8 in September, signaling a deceleration in regional manufacturing activity.

Neither release materially altered the day’s trading, which was overwhelmingly driven by AI-related earnings reactions and technical deterioration in semiconductors.

Looking Ahead

With no session Saturday (Halloween), markets reopen Monday with a busy data slate:

Monday: Final October S&P Global U.S. Manufacturing PMI (prior 56.0) at 9:45 ET; September Job Openings (consensus 7.100 mln; prior 7.079 mln), September Construction Spending (consensus 0.5%; prior 0.9%), and October ISM Manufacturing (consensus 54.7; prior 54.5) at 10:00 ET; U.S. Treasury’s quarterly refunding financing estimates at 15:00 ET.
Tuesday: September Business Inventories (prior 0.4%) and September Factory Orders (consensus 1.2%; prior 0.1%) at 10:00 ET.
Wednesday: Weekly MBA Mortgage Index (prior 3.4%) at 7:00 ET; October ADP Employment Change (consensus 75,000; prior 90,000) at 8:15 ET; September Trade Balance due (details not fully specified in available data).

Investors will continue to monitor fallout from the AI-trade correction, particularly further commentary on infrastructure financing and capex plans from mega-cap technology names, alongside crude oil price action tied to geopolitical developments surrounding Iran following this week’s midterm elections.