$SPX Selloff Deepens as Tech Weakness and Rate-Hike Fears Hit Markets
The market declined today, driven by tech weakness and a sharp surge in December rate-hike odds.
$Alphabet(GOOG)$ plunged -12.3% on weaker than expected revenue growth in its core search business, reigniting Wall Street anxieties over immediate returns on massive AI infrastructure investments. The weakness rippled across software and infrastructure peers: $ServiceNow(NOW)$ plummeted -27%, $Frontier Asset Total International Equity ETF(FINT)$ tumbled 20%, and $Microsoft(MSFT)$ succumbed to broader market pressure, closing lower despite reporting a strong quarter.
Macro headwinds compounded the selloff. Hot inflation data and resilient GDP readings prompted traders to aggressively recalibrate policy expectations, pushing the probability of a December rate hike up to 74%.
Price action remained choppy this week. The $S&P 500(.SPX)$ chart posted here on Tuesday, highlighting a sequence of lower highs and indecisive candles, was validated as the index printed yet another lower high that is likely to stay as a high considering the bearish reaction to $Amazon.com(AMZN)$ earnings.
After the bell, AMZN added further pressure to the tape, dropping -5% in extended trading following a top and bottom line miss. Q3 EPS arrived at $1.89 (vs. $1.97 consensus) on revenue of $201.9 billion (vs. $202.2 billion expected). In addition, the management held its massive 2026 CapEx budget at $220 billion, dragging trailing twelve-month free cash flow to negative $42.4 billion and sealing the post-market selloff.
Markets are always moving - and sometimes, the best move is knowing what works for you.
With Treasury yields, oil prices and rate expectations keeping markets on edge this week, investors are once again thinking carefully about where to position next. There’s no one-size-fits-all choice in investing — and the same goes for Tiger Merch. This month’s hot picks are in, featuring the Tiger Toiletry Bag, Universal Travel Adapter, Tiger Umbrella and more favourites chosen by fellow Tigers.
Explore the Monthly Hot Picks in Tiger Coin Mall, now 12% OFF for a limited time.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- benbent·16:51The proximate trigger was a hot US September CPI print that revived rate-hike expectations, with the market-implied probability of an October hike jumping sharplyLikeReport