Market brief — October 31, 2026

In 30 seconds

• On Friday, October 30, technology stocks led a broad market sell-off as disappointing Intel and Amazon results revived doubts about the cost and profitability of artificial-intelligence investment.^[1][3]
• The Nasdaq fell 2.86%, while the S&P 500 lost 1.82%; chipmakers suffered especially heavy losses, showing that valuation and spending concerns now extend beyond a few companies.^[3]
• For savers, the key change is greater concentration risk in expensive technology shares, while utilities, healthcare and everyday-consumer businesses appear relatively more resilient.

The figures from the last session

• CAC 40: 7,969.42, down 0.01%; broadly flat despite global technology weakness.
• Euro Stoxx 50: 6,131.31, down 1.22%; European shares followed the global decline.
• DAX: 25,818.21, down 0.85%; German equities weakened with technology stocks.
• S&P 500: 7,580.07, down 1.82%; worst session since June, according to market reports.^[1][3]
• Nasdaq: 25,437.00, down 2.86%; technology stocks drove the decline.^[1][3]

These are Friday’s closing levels, not live prices for Saturday, October 31. A weekend separates that session from the next market openings.

The subject of the day, explained

The main issue was whether artificial-intelligence spending can generate sufficient returns. Intel’s outlook disappointed investors, while Amazon reported heavier capital spending and weaker-than-expected profit. Intel fell nearly 29%, and the semiconductor sector dropped 7.2%.^[1][3]

The mechanism is straightforward. Companies investing heavily today must eventually produce higher sales or profits. If that payoff looks less certain, investors demand a lower price for the same expected earnings. It resembles paying a large renovation bill before knowing whether the extra room will generate enough income. Rising spending therefore becomes a concern when revenue growth does not keep pace.

The analysis of the day

Friday’s decline was broad enough to matter, but it was not an indiscriminate collapse. The scanner showed a mixed market: 53% of tracked shares remained above their 200-day average, while 48% stayed above their 50-day average. That suggests a fragile market rather than a universal breakdown.

The strongest pressure came from technology and semiconductors. Intel’s disappointing outlook and Amazon’s spending plans provided concrete reasons for investors to reduce exposure to the most expensive artificial-intelligence beneficiaries.^[1][3] The Nasdaq was already 7.8% below its October 6 closing high, according to reporting published on October 31.^[3]

Defensive areas offered some counterweight. Recent market coverage noted resilience in utilities, energy and companies selling everyday goods.^[1] This fits the scanner, which identified Altria Group and Exelon among its strongest signals. However, those signals do not yet prove that a lasting rotation has begun.

The most likely near-term scenario is continued volatility, with investors testing whether upcoming technology results can demonstrate better returns on investment. A stabilisation would be supported by improved forecasts, calmer semiconductor trading and the S&P 500 recovering above 7,580. A renewed slide would be signalled by further profit warnings and a sustained break below that level.

The word of the day

Market breadth measures how widely a market movement is shared across individual stocks. If 53% of shares remain above their long-term average, the market has more internal support than an index driven by only a few large companies.

What the scanner sees

• Altria Group (MO), tobacco: score exceptional, with a 1.7% gap and a move above its highest level of the past 20 sessions. Its defensive consumer profile fits the search for steadier earnings.
• Exelon (EXC), utilities: score exceptional, with a 0.5% gap and a new 20-session high. The signal supports the view that regulated and defensive businesses are attracting interest.
• Gilead Sciences (GILD), biotechnology: score exceptional, with a 3.1% gap, higher volume and a new 20-session high. Healthcare strength also contrasts with the technology sell-off.

These companies confirm a preference for defensive or less economically sensitive sectors. They do not, however, establish that the broader market has completed its adjustment.

The agenda

• The next United States employment and inflation releases: they could change expectations for interest rates and influence the valuation of growth shares.
• Upcoming technology-company earnings: further guidance on artificial-intelligence spending and cash generation will determine whether Friday’s concerns deepen.
• Central-bank decisions and commentary: signals from the Federal Reserve, European Central Bank and Bank of Japan can move bond yields and equity valuations.
• November corporate results: healthcare, utilities and consumer companies will be tested on whether their relative strength reflects genuine earnings resilience.

To watch

• Technology guidance: another warning about capital spending or weak profitability could extend the Nasdaq decline.
• Market breadth: a fall below the current 53% share above the 200-day average would indicate that weakness is spreading beyond major technology companies.

The key figure: Nasdaq 25,437.00, down 2.86%—Friday’s decline showed that artificial-intelligence spending concerns had become a broad market valuation issue, not merely an isolated company problem.