U.S. markets experienced a notable sell-off, with the Nasdaq dropping over 2% and the S&P 500 declining 1.2%, marking their worst performances since June and July, respectively.
Meta Platforms was a significant contributor to these losses, falling nearly 7% after reporting a negative free cash flow of $2.12 billion in its third-quarter earnings and raising its full-year capital expenditure forecast to between $135 billion and $145 billion. This negative sentiment in the stock market led to a shift towards bonds, with the benchmark 10-year U.S.
Treasury yield falling below 5% for the first time in a month, reflecting a flight to safety among investors. Meanwhile, oil prices surged, with Brent crude rising 4% to $113.17 per barrel, driven by reports of potential military actions involving the U.S. and Israel against Iran.
In the political arena, Elon Musk has emerged as a significant donor for the upcoming 2026 midterm elections, contributing approximately $366 million, which could influence market perceptions and investor confidence.
Looking ahead, Bill Ackman, CEO of Pershing Square, expressed optimism for 2027, suggesting that resolution of ongoing geopolitical conflicts could lead to a more favorable market environment.
Additionally, Nvidia's CEO Jensen Huang dismissed concerns about a memory supply glut by 2029, indicating ongoing demand for memory products, which may provide some stability in the tech sector amidst current market fluctuations