On the 25th local time, the three major US stock indices collectively closed lower, with the Nasdaq down more than 2%. As of the close, the Dow fell 0.32%, the S&P 500 index fell 1.43%, and the Nasdaq fell 2.43%.
Large technology stocks generally fell, with Google A falling nearly 10%. On the news, Google's parent company Alphabet's revenue for the third quarter was $76.693 billion, an 11% increase from $69.92 billion in the same period last year, and an 11% increase based on fixed exchange rates; The net profit was 19.689 billion US dollars, an increase of 42% compared to 13.910 billion US dollars in the same period last year. But its cloud business performance failed to meet analysts' expectations, overshadowing its strong revenue growth and profitability performance. The company recorded its largest daily decline since March 2020, with a market value evaporation of over 166 billion US dollars (over 1.2 trillion RMB).
On the international market, the main indexes of Türkiye's stock market all fell sharply. Among them, Türkiye's Istanbul 100 Index fell by 7.1%, the largest decline since February. The index triggered the circuit breaker mechanism twice within the day. On the news side, President Erdogan of Türkiye said on the 25th that he had cancelled his planned visit to Israel and called on all parties to cease fire immediately when talking about the situation between Palestine and Israel.
Israeli Prime Minister Netanyahu stated in a televised speech to the country that the Israeli army is preparing for ground operations to attack the Gaza Strip.
The three major US stock indices collectively closed lower
Nasdaq down more than 2%
On the 25th local time, the three major US stock indices collectively closed lower, with the Nasdaq down more than 2%. As of the close, the Dow fell 0.32% to 33035.93 points; The S&P 500 index fell 1.43% to 4186.77 points; The Nasdaq fell 2.43% to 12821.22 points.
The rise in US bond yields has put pressure on the stock index. On Wednesday, the yield of US 10-year treasury bond bonds rose 11.5 basis points to 4.955%; The 30-year treasury bond bond yield rose 15 basis points to 5.09%.
Evelyne Gomez Liechti, strategist of Mizuho International, said: "The yield of treasury bond may fluctuate in the near future, but we do believe that the latest US data supports the long-term rise of treasury bond yield. If the 10-year treasury bond yield tests the 5% level again, we will not be surprised."
Ed Moya, senior market analyst at Oanda, said, "Corporate financial reports have made headlines, but I cannot shift my gaze away from the bond market. Since 1982, we have never seen US bond yields rise so rapidly, which would cause trouble for the stock market
In addition, according to news sources quoted by the media, Bill Ackerman, a well-known hedge fund tycoon and founder of Panxing Plaza, made about $200 million from shorting 30-year US treasury bond bonds.
At the beginning of August this year, Ackerman revealed that he was shorting 30-year US treasury bond bonds because he believed that the long-term inflation rate of the United States would be close to 3%, rather than the 2% set by the Federal Reserve. Ackerman stated at the time that he would not be surprised if the yield on the 30-year US Treasury bond climbed to 5.5% in the near future. However, Ackerman stated on Monday that he had already liquidated his short positions in long-term US Treasury bonds, as there were too many risks associated with continuing to short bonds at current long-term interest rates. Ackermann warned that the pace of economic slowdown is faster than recent data shows.
Data shows that about 30% of S&P 500 index companies will release financial reports this week, and about 25% have already reported third quarter earnings, with 78% exceeding expectations. Adam Parker, founder and CEO of Trivariant Research, commented that the overall financial reporting season has yielded some positive results.
In terms of macroeconomics, while the US mortgage interest rate is approaching 8%, a measure of home financing applications has dropped to its lowest level since 1995, indicating the degree of demand suppression caused by increasingly severe affordability challenges. The Mortgage Bankers Association Home Purchase Application Index fell 2.2% to 127 in the week ending October 20, setting its lowest level since 1995. According to data released on Wednesday, the contract interest rate for 30 year fixed interest loans has risen for the seventh consecutive week, reaching 7.9%. Including mortgage related fees and compound interest, the actual interest rate has exceeded 8% for the first time in 23 years. The five-year adjustable mortgage interest rate has increased by nearly half a percentage point, approaching 7%, the largest increase since early June.
In other markets, the three major European stock indices closed higher, with the German DAX index rising 0.08% to 14892.18 as of the close; The FTSE 100 index in the UK rose 0.33% to close at 7414.34; The French CAC40 index rose 0.31% to 6914.94.
International oil prices rose on the 25th. As of the close, the price of light crude oil futures for December delivery on the New York Mercantile Exchange increased by $1.65 to close at $85.39 per barrel, an increase of 1.97%; The London Brent crude oil futures for December delivery increased by $2.06 to close at $90.13 per barrel, an increase of 2.34%.
The most active December gold futures market on the New York Mercantile Exchange rose $8.8 on the 25th to close at $1994.9 per ounce, an increase of 0.44%. On the same day, the price of silver futures for December delivery fell 10.9 cents to close at $23.007 per ounce, a decrease of 0.47%; The price of platinum futures for delivery in January 2024 increased by $20.5 to close at $912.4 per ounce, an increase of 2.30%.
Google plummeted by nearly 10%
In terms of sectors, the 11 major sectors of the S&P 500 index fell nine times and rose two times. The communication services sector and non essential consumer goods sector led the decline with declines of 5.89% and 2.40%, respectively, while the utilities sector and essential consumer goods sector rose by 0.48% and 0.33%, respectively.
Large technology stocks generally fell, with Google down nearly 10%, Amazon and Intel down over 5%, NVIDIA and Facebook parent company Meta down over 4%, and Apple and Tesla down over 1%; Microsoft rose by over 3%.
On the news, Google's parent company Alphabet's revenue for the third quarter was $76.693 billion, an 11% increase from $69.92 billion in the same period last year, and an 11% increase based on fixed exchange rates; The net profit was 19.689 billion US dollars, an increase of 42% compared to 13.910 billion US dollars in the same period last year. But its cloud business performance failed to meet analysts' expectations, overshadowing its strong revenue growth and profitability performance.
Microsoft's first quarter revenue was $56.5 billion, with analysts expecting $54.54 billion; First quarter earnings per share of $2.99; The revenue of other personal computing businesses in the first quarter was 13.67 billion US dollars, with analysts expecting 12.89 billion US dollars; The revenue of the intelligent cloud business in the first fiscal quarter was 24.26 billion US dollars, with analysts expecting 23.61 billion US dollars; The revenue of the productivity business in the first fiscal quarter was 18.59 billion US dollars, with analysts expecting 18.29 billion US dollars.
Citigroup analyst Tyler Radke gave Microsoft a "buy" rating with a target price of $430. Wedbush Securities analyst Dan Ives gave Microsoft a "outperforming" rating with a target price of $400.
Apple plans to conduct a comprehensive reform of its AirPods headphone product line. According to insiders, these changes will include the launch of an improved version of the entry-level AirPods in 2024 and the release of a new Pro model the following year. The company is updating its product's earplug design, headphone case appearance, and sound quality. According to insiders, the new AirPods Max headphones will also be available in 2024.
Meta Platforms announced its results after hours on Wednesday, with revenue of $34.15 billion in the third quarter and analysts expecting $33.51 billion; The monthly active users of Facebook in the third fiscal quarter were 3.05 billion, a year-on-year increase of 3%; The number of daily active Facebook users in the third fiscal quarter was 2.09 billion, with analysts expecting 2.07 billion; Earnings per share in the third fiscal quarter were $4.39, compared to $1.64 in the same period last year; The advertising revenue in the third fiscal quarter was 33.64 billion US dollars, a year-on-year increase of 24%; Expected revenue for the fourth fiscal quarter is $36.5 billion to $40 billion, with analysts expecting $38.76 billion.
Most popular Chinese concept stocks fell, with Xiaopeng Automobile falling more than 8%, NIO falling more than 6%, Futu Holdings falling 6%, Bilibili falling nearly 4%, Tencent Music, Vipshop, iQiyi, and Baidu falling more than 3%, Ideal Automobile and Alibaba falling more than 2%, Yum China and NetEase falling more than 1%, and JD.com slightly falling; New Oriental rose nearly 3%.
Mike Johnson, a conservative Republican member of the US House of Representatives, was elected as Speaker
According to Xinhua News Agency, after three weeks of being leaderless, the United States House of Representatives held its fourth round of voting for Speaker on the 25th, with Republican conservative Federal Representative Mike Johnson from Louisiana elected as Speaker.
Currently, Republicans hold 221 seats in the House of Representatives, while Democrats hold 212 seats. With all members present, the Speaker candidate needs to obtain 217 votes to achieve a simple majority. Johnson received unanimous support from all Republicans present in the House of Representatives on the same day, receiving 220 votes, which also means that the "internal turmoil" that has lasted for weeks among House Republicans has come to an end.
Since the recall of former Republican Speaker McCarthy on October 3rd due to opposition from right-wing conservatives within the party, the House of Representatives has been paralyzed. The Republican Party in the House of Representatives successively nominated Majority Leader Scalis, Chairman of the House Judiciary Committee Jim Jordan, and Majority Whip Tom Emmer as their candidate for Speaker, but they all withdrew or lost the election due to insufficient party support. On the 24th, after Emmer announced his withdrawal from the Speaker race, House Republicans nominated Johnson as their party's candidate for Speaker.
Johnson is considered a conservative within the Republican Party, winning votes from both right-wing conservative lawmakers who criticize McCarthy and moderate lawmakers who oppose hardline conservative Jordan. Johnson was first elected as a member of the House of Representatives in 2016 and has relatively junior qualifications compared to previous Speaker of the House of Representatives. The National Broadcasting Corporation of the United States called Johnson a "relatively inexperienced" Speaker.
Türkiye's Foreign Minister Visits Qatar
Both sides expressed rejection of double standards on the Palestinian Israeli issue
According to CCTV news, on the 25th local time, Türkiye's Foreign Minister Hakan Feidan visited Qatar and met with the Emir (Head of State) Tamim of Qatar and the Prime Minister and Foreign Minister Mohammed of Qatar. The two sides discussed relations between the two countries and the situation between Palestine and Israel.
Both countries reiterated their support for the legitimate rights of the Palestinian people and expressed their rejection of double standards in the Israeli-Palestinian issue. The killing of civilians cannot be condemned on one side, but is considered legitimate on the other.
Qatar stated that it opposes all forms of violence against civilians and all parties should avoid escalation and reduce civilian casualties. The Qaddafi side condemns the policy of collective punishment against the Gaza Strip and emphasizes that humanitarian assistance issues should not be politicized and turned into a tool for sanctions. Qatar also expressed its hope to achieve a "breakthrough" as soon as possible on the issue of the release of detained individuals by the Palestinian Islamic Resistance Movement (Hamas).
Egyptian President Cesi Holds Talks with French President Macron
Discuss the situation between Palestine and Israel
According to CCTV news, on the 25th local time, Egyptian President Cecil held talks with visiting French President Marco n. After the talks, the two sides held a joint press conference.
Cesi stated at the press conference that Egypt expects the crisis between Palestine and Israel to be contained and avoid spreading to other regions. Saisi said that Egypt is working to release more hostages from the Palestinian Islamic Resistance Movement (Hamas) in order to calm the tense regional situation.
Macron stated that France supports the legitimate right of the Palestinian people to establish a state, and is willing to work together with all partners in the region to achieve a ceasefire between both sides of the conflict.
Both sides unanimously agree on the necessity of restarting the Palestinian Israeli peace process.
In addition, Makron also stated that if Israel launches a "large-scale ground military operation" against the Gaza Strip, it would be a "mistake". He warned that ground military operations not only harm civilians in the Gaza Strip, but also "cannot ensure Israel's long-term security" in the long run.
Saisi also urged Israel not to carry out ground military operations against the Gaza Strip, stating that ground military operations will undoubtedly bring more civilian casualties.