Market Summary

U.S. equities closed out a volatile week with a sharp selloff on Friday, October 30, as a deepening correction in AI-related stocks dragged the major averages lower into the weekend. The S&P 500 fell 140.32 points (-1.82%) to 7580.14, the Nasdaq Composite plunged 747.73 points (-2.85%) to 25457.43, and the DJIA dropped 572.25 points (-1.09%) to 51770.52. The Nasdaq bore the brunt of the damage, now roughly 9.0% off its October peak near 27,700 and sitting decisively below its 50-day moving average (~26,570).

The session’s dominant theme was a semiconductor-led rout: the PHLX Semiconductor Index plunged 7.3% and closed below its 200-day moving average, with Intel’s disastrous post-earnings guidance (-28.58%) setting the tone. Mega-cap growth names continued to struggle following Amazon’s earnings miss and 2027 spending outlook, extending the market’s ongoing reassessment of AI infrastructure economics. Sector rotation into defensives was pronounced — Energy, Consumer Staples, Health Care, and Utilities outperformed — but was insufficient to offset broad-based weakness, as even the S&P 500 Equal Weighted Index fell 0.8% and small/mid-caps joined the selling.

For the week, the divergence between mega-cap tech and the broader market was notable: the S&P 500 (-0.6%), Nasdaq (-2.0%), and DJIA (-0.9%) all finished lower, while the Russell 2000 and S&P Mid Cap 400 each gained 1.3%. WaveFinder breadth data confirms the deteriorating technical backdrop, with Primary Sentiment registering Bearish and the 4% Sentiment reading Very Bearish (Bulls 109 / Bears 741), while only 49.72% of stocks remain above their 40-day moving average.

Market Snapshot

Index	Level	Change	% Change
DJIA	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%

NYSE: Advancers 998 | Decliners 1715 | Volume 1.57 bln
Nasdaq: Advancers 1091 | Decliners 3366 | Volume 9.04 bln

WaveFinder Breadth:

Primary Sentiment: Bearish | 4% Sentiment: Very Bearish | 40 SMA Sentiment: Neutral
Primary Bulls 790 / Bears 1427
4% Bulls 109 / Bears 741
Above 20-day SMA: 56%
Above 40-day SMA: 49.72%
9-Month Bulls 11 / Bears 79; Bull Follow-Through 30.43%

YTD Performance: Russell 2000 +13.3% | S&P Mid Cap 400 +10.8% | S&P 500 +10.7% | Nasdaq Composite +9.4% | DJIA +7.7%

Sector Performance

Ranked from strongest to weakest (Friday session, per Briefing.com Industry Watch; WaveFinder ATR reflects volatility context, not direction):

1. Energy — Strong; +1.9% on session, benefiting from crude above $104/bbl; ATR 2.09% (flat, P84)
2. Consumer Staples — Strong; +1.4%, led by Walmart, Coca-Cola, Mondelez; ATR 2.63% (flat, P95)
3. Health Care — Strong; +0.4%, boosted by Regeneron (+13.33%) and Eli Lilly (+3.19%); ATR 2.36% (flat, P58)
4. Utilities — Strong; +0.6%; ATR 3.46% (rising, P100)
5. Real Estate — Modest gain, +0.2%; ATR -0.23% (rising, P89)
6. Materials — Not detailed in Industry Watch strong/weak list; ATR 3.05% (rising, P100)
7. Financials — Weak; ATR -0.86% (rising, P95)
8. Industrials — Weak; -1.6%, pressured by AI infrastructure-related names; ATR -0.39% (rising, P79)
9. Communication Services — Weak; -1.1%, Alphabet and Reddit (-29.27%) weighing; ATR -1.53% (falling, P53)
10. Consumer Discretionary — Weak; -0.9%, Amazon-driven; ATR 1.62% (rising, P95)
11. Information Technology — Weakest; -4.3%, semiconductor rout; ATR -1.92% (flat, P5)

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 ability to meet data center demand.
HP Inc. (HPQ) — $28.78, -$3.05 (-9.58%): Dragged lower by Intel’s PC demand warning.
Dell (DELL) — $424.16, -$51.35 (-10.80%): Same PC-demand read-through pressure.
Sandisk (SNDK) — $1,151.43, -$178.62 (-13.43%): Beat Q1 estimates (adj. EPS $49.51 vs. $46.67 consensus; revenue $11.03 bln, +23% sequentially) but modest Q2 revenue guidance upside and caution on fiscal Q3 seasonal demand overshadowed strong Datacenter growth (+61% sequentially to $4.8 bln).
NVIDIA (NVDA) — $204.78, -$8.88 (-4.16%): Retreated alongside broader semiconductor weakness.
Amazon (AMZN) — $240.35, -$3.44 (-1.41%): Earnings miss, negative free cash flow despite accelerating AWS growth; 2027 infrastructure spending plans raised AI-ROI concerns.
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 supported Energy sector.
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 staples 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) — Shares modestly lower despite Q4 EPS of $0.80 beating expectations; FY27 revenue guidance fell below expectations due to China licensing transition.

Stock Spotlight

Sandisk (SNDK) was one of the session’s most dramatic movers, plunging 13.43% to $1,151.43 despite delivering results that exceeded expectations across nearly every headline metric. Adjusted EPS of $49.51 topped the $46.67 FactSet consensus, and revenue surged 23% sequentially to $11.03 billion versus $10.72 billion expected. The standout was Datacenter revenue, which rocketed 61% sequentially to $4.8 billion, lifting that segment’s share of total revenue to 43.5% from just 11.7% a year earlier — driven by enterprise SSD adoption and three U.S. hyperscaler relationships. Adjusted gross margin reached a robust 85.1%.

Despite this strength, the stock sold off sharply as Q2 revenue guidance ($12.2-$12.6 billion) came in only modestly above the $12.31 billion consensus, and management struck a cautious tone on fiscal Q3 seasonality without issuing formal guidance. Consumer segment revenue declined 29% sequentially as higher pricing pressured demand. The company does retain significant long-term visibility, with eight NBM customers underpinning $93.9 billion in minimum contracted revenue and $88.9 billion in remaining performance obligations covering roughly half of FY27 bit volumes. Management forecasts ~40% Datacenter NAND bit-demand growth in calendar 2027. Notably, an eight-for-one stock split takes effect with split-adjusted trading beginning November 20. The market’s reaction underscores a broader pattern seen across the session: strong current results are being overshadowed by investor skepticism about forward demand durability and AI-related capital returns.

Bond Market & Treasuries

Treasuries finished the week on a firmly higher note, with yields across the curve now down roughly 40 basis points from their October highs, marking a fourth consecutive weekly gain for the complex.

Friday Yield Levels:

2-yr: 4.59% (-7 bps on day, -9 bps week)
3-yr: 4.65% (-8 bps on day, -10 bps week)
5-yr: 4.72% (-8 bps on day, -9 bps week)
10-yr: 4.93% (-6 bps on day, -6 bps week)
30-yr: 5.31% (-2 bps on day, -1 bp week)

Key drivers included safe-haven buying amid the equity selloff, St. Louis Fed President Musalem (non-voter) speaking in favor of additional measured rate hikes, and the Q3 Employment Cost Index rising 0.8% (in line with consensus), with wages/salaries up 3.1% year-over-year — a pace still undershooting inflation. A rising oil price provided a partial counterforce against further Treasury gains, keeping the session in a sideways range. The 10-year note settled at 4.929% intraday (+15/32 in price).

Commodities

WTI Crude Oil: $104.06/bbl, +2.0% on the day; settled just above $104, adding just under $1.00/bbl for the week amid speculation of potential military action against Iran following midterm elections.
Gold: $3,899.00/ozt, -3.3%
Copper: $6.48/lb, -1.8%

(Silver not disclosed in source data.)

Overseas Markets

Asia:

South Korea: -3.5% (poor finish to the week, tech volatility weighing)
Japan: -2.1% (overshadowed by Bank of Japan policy decision)
Bank of Japan held its policy rate at 1.25%, as expected, while acknowledging its price target has been reached; announced ETF sales will increase to JPY860 billion from JPY330 billion starting in January.
Japan October Tokyo Core CPI: +2.6% yr/yr (as expected); Tokyo CPI +2.8% yr/yr (vs. +3.3% expected); September Industrial Production +2.2% m/m (vs. +1.2% expected); Retail Sales +2.3% yr/yr (vs. +3.3% expected)
South Korea September Industrial Production +9.0% m/m; Retail Sales +3.6% m/m

Europe:

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, +1.2% yr/yr; October Unemployment Rate 6.4%
France Q3 GDP -0.1% q/q, -0.1% yr/yr; October CPI +3.4% yr/yr (vs. +3.2% expected)
Italy Q3 GDP flat q/q, +0.8% yr/yr; October CPI +5.4% yr/yr (vs. +4.6% expected)
Spain Q3 GDP +0.6% q/q, +2.7% yr/yr; October CPI +4.9% yr/yr (in line)
U.K. October Nationwide HPI flat m/m

Currencies: EUR/USD -0.1% to 1.1167 | GBP/USD +0.1% to 1.3395 | USD/CNH unchanged at 6.6533 | USD/JPY -0.1% to 157.51 | U.S. Dollar Index slipped 0.2% to 101.89 (trimming weekly gain to 0.1%)

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%. Wages/salaries for civilian workers up 3.1% year-over-year, continuing to undershoot inflation — a trend likely to feed concerns about discretionary spending pressure.
Chicago PMI: 55.3 in October, down from 58.8 in September.

Looking Ahead

Monday:

Final October S&P Global U.S. Manufacturing PMI (prior 56.0) at 9:45 ET
September Job Openings (Briefing.com consensus 7.100 mln; prior 7.079 mln) at 10:00 ET
September Construction Spending (Briefing.com consensus 0.5%; prior 0.9%) at 10:00 ET
October ISM Manufacturing (Briefing.com consensus 54.7; prior 54.5) at 10:00 ET
U.S. Treasury quarterly refunding financing estimates at 15:00 ET

Tuesday:

September Business Inventories (prior 0.4%) at 10:00 ET
September Factory Orders (Briefing.com consensus 1.2%; prior 0.1%) at 10:00 ET
Midterm election voting concludes, with markets watching for potential developments regarding Iran following the vote

Wednesday:

Weekly MBA Mortgage Index (prior 3.4%) at 7:00 ET
October ADP Employment Change (Briefing.com consensus 75,000; prior 90,000) at 8:15 ET
September Trade Balance data (details not fully specified in source)

Markets will continue to monitor the fallout from the AI-related earnings cycle (Intel, Amazon, Sandisk) and watch for any signs of stabilization in semiconductor and mega-cap tech names following the PHLX Semiconductor Index’s break below its 200-day moving average.