Overview
On Thursday, October 30, 2025, U.S. stocks closed lower. There were significant concerns about whether the large-scale investments in AI could actually translate into profits, leading to a halt in the market's upward trajectory. Major tech stocks such as Meta and Microsoft plummeted due to increased expenditures related to AI, which contributed to a decline in the S&P 500 index.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
Meta's stock fell by 11.3%, marking its largest single-day drop in three years after announcing that its capital expenditures would significantly increase next year due to AI investments. Microsoft's stock also decreased by 2.9% following reports of record capital spending of $35 billion, with further expenditure increases expected. Conversely, Google's stocks saw a 2.5% rise, thanks to its advertising and cloud divisions exceeding earnings expectations. Meanwhile, Nvidia's stock dipped as it clarified that certain discussions about chip sales in China were not addressed in recent talks between Trump and Xi Jinping.
Tomorrow's Economic Indicators
| Time (EST) | Event |
|---|---|
| 8:45 PM | U.S. Chicago Fed PMI Release |
| 8:30 PM | Federal Reserve's Logan Speech |
| 9:00 PM | Federal Reserve's Bostic Speech |
General Opinion
The volatility in AI-related stocks and the hawkish remarks from the Federal Reserve are causing confusion in the market, yet the news of the U.S.-China trade truce seems to have little impact. This could suggest a shift in funds from leading tech stocks, which some experts view as a natural and healthy market correction.
