Wall Street opens lower with tech earnings and Nasdaq pressured by AI costs
Nasdaq drops 2.19% at opening, according to Money Times, after Amazon's earnings below expectations; Vale has 53% lower profit.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
Wall Street opened the last session of the week in decline this Friday, the 30th, with the Nasdaq at the center of the losses. According to Money Times, the technological index lost 2.19%, to 25,611 points, while the S&P 500 fell 1.21%, to 7,627.31 points, and the Dow Jones lost 0.39%, to 52,141.00 points, at the opening.
The backdrop was the balance sheets released on the night of October 29th. Amazon and Intel presented their results, and, according to Money Times, Amazon's balance sheet was below expectations. The same vehicle attributes the pressure on the Nasdaq to rising artificial intelligence costs, which led investors to migrate from technology to defensive sectors.
In Brazil, the focus was on Vale (VALE3). The mining company also released its balance sheet on the night of October 29, and profit fell 53%, according to Money Times. The company's ADRs were already falling in the pre-market, and the company scheduled a conference call to explain the result.
The economic news of the day also brought IBGE's Pnad Contínua, with the unemployment rate for September. The Broadcast median was 5.2%, compared to 5.3% in the previous month. At the same time, Money Times highlighted the fall of bitcoin (BTC) and the decline of the Ibovespa measured in dollars.
Outside, the radar included previews of the GDP of the main European economies and China's PMIs, indicators that help measure the pace of global activity and usually influence risk appetite.
What changes for the investor
The sequence of balance sheets shows that the market is closely observing the relationship between investments in artificial intelligence and company margins. If costs continue to rise, pressure will likely remain on technology stocks, which reinforces the reading of rotation to defensive sectors presented by Money Times. Those who have exposure to the Nasdaq, directly or through BDRs, feel this movement faster. For the Brazilian investor, it is worth monitoring Vale's performance, the dollar exchange rate, the behavior of the Ibovespa and upcoming employment and activity data together, without drawing definitive conclusions from a single session.
Automatically translated from Portuguese.
