31st October 2024 – (New York) Global stock indexes experienced declines on Wednesday, primarily influenced by a disappointing forecast from Advanced Micro Devices (AMD) that negatively impacted chipmakers. In contrast, gold prices soared to an all-time high as investors sought safe-haven assets in anticipation of uncertainties surrounding the upcoming U.S. presidential election on 5th November.
The Dow Jones Industrial Average saw a marginal increase of 0.20 points, closing at 42,233.25. Meanwhile, the S&P 500 dipped by 7.55 points, or 0.13%, to 5,825.37, and the Nasdaq Composite fell 44.27 points, or 0.24%, to 18,668.48. British stocks, in particular, hit their lowest level since August after UK Finance Minister Rachel Reeves announced plans to raise taxes by £40 billion annually ($52 billion) in her first budget.
AMD’s shares plummeted nearly 9.9% following a disappointing revenue forecast and lacklustre sales of artificial intelligence chips. This decline affected other semiconductor stocks, with Nvidia also slipping by 1.3%. Conversely, Alphabet’s shares rose more than 3% after the tech giant reported quarterly revenues that surpassed expectations.
Investor focus now shifts to upcoming earnings reports from major companies such as Meta Platforms, Microsoft, Apple, and Amazon, which are expected to provide further insights into market trends. Quincy Krosby, chief global strategist at LPL Financial, emphasised the market’s keen interest in these results, particularly regarding guidance on AI-related investments.
Gold, meanwhile, has become a focal point for investors, reaching record highs as uncertainty looms over the election. A recent Reuters/Ipsos poll indicated a tight race between Vice President Kamala Harris and former President Donald Trump, sparking increased demand for gold as a protective asset.
The U.S. dollar experienced fluctuations, edging down against major currencies amid mixed signals from economic data, including stronger-than-expected private payrolls growth in October. The U.S. dollar index fell 0.16% to 104.07 after peaking at 104.43 earlier in the session.
In the energy sector, oil prices showed signs of recovery, with Brent crude futures settling up $1.43, or 2.01%, at $72.55 per barrel, while U.S. West Texas Intermediate crude rose $1.40, or 2.08%, to $68.61, following unexpected declines in U.S. crude and gasoline inventories.
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