S&P500 -5.64% (3,269.96); NASDAQ -5.51% (10,911.59); DJIA -6.47% (26,501.60)
This week’s reports
- Equities markets capped a volatile trading week on a gloomy note on both sides of the Atlantic after broadly upbeat earnings from America’s tech giants failed to impress investors. The global sell-off comes against a backdrop of renewed virus-related lockdowns across much of Europe and the upcoming US presidential election that has sparked an uptick in stock volatility. On top of that, the US hit an all-time high in daily COVID-19 cases on Thursday.
- US stocks tumbled, capping their worst week since March and its first back-to-back monthly loss since worries about the pandemic first peaked in March. Stocks suffered after mega-cap tech earnings results didn’t satisfy investor demand for future growth. Alphabet, Amazon, Apple, and Facebook reported quarterly earnings that mostly beat estimates, but tepid and uncertain growth outlooks sent technology stocks tumbling. The S&P 500 Index fell 2.3% in October.
- European stocks closed their worst week since the depths of the COVID-19 pandemic’s first wave, with markets struggling as investors absorbed technology earnings disappointment, COVID-19 worries, and a looming US presidential election. Stoxx 600, the benchmark European index, ended October with a loss of 5.6%.
- Data showed the Eurozone economy grew at a record pace in the third quarter, but has already stalled amid new restrictions, leaving Europe well behind the US and Asia in its recovery from the crisis. As lockdowns were put back in place in Germany, Italy, France and Spain, European Central Bank President Christine Lagarde said the economy was losing momentum faster than expected and that more monetary stimulus would be coming by December.
- Emerging market stocks as denoted by the MSCI EM, fell strongly for the week, but managed to outperform their developed counterparts (the MSCI World Index of developed countries) for the week, the month and the year to date.