Top U.S. Stories

  • Alphabet plunges on weak sales. Shares of Google’s parent fell almost 13% after third-quarter sales missed expectations, erasing roughly $500 billion in market value in one day, according to the report. Why it matters: Investors are now asking whether huge AI spending is turning into profit fast enough, and that doubt hit chip and software stocks too.
  • Software and chip stocks slide. ServiceNow fell about 25%, Fortinet about 21% and Intel about 17% after their earnings, while Microsoft beat estimates and held up better.
  • The economy looks resilient. U.S. GDP grew at a 3.4% annual rate in the third quarter, above the 3.2% forecast, and weekly jobless claims came in at 194,000. Why it matters: Strong growth with sticky inflation keeps talk of another Fed hike alive rather than rate cuts.
  • The Fed held rates on Wednesday, and markets are weighing a possible move in December.
  • Oil eased on U.S.–Iran diplomacy hopes. Reports said the vice president sent a letter to Tehran to revive talks, though President Trump reportedly denied assigning it. Why it matters: Brent still sits near $114, so energy costs keep pressure on inflation worldwide.

Compass Insight

Yesterday’s split screen told the story: U.S. tech fell while Tokyo rose. The market is moving from “buy anything with AI in the name” to “show me the return.” Alphabet’s miss and a sell-off in software names pushed investors toward defensive sectors, while suppliers tied to AI equipment, such as Japan’s Advantest, gained after raising guidance. For households, oil near $100 and central banks debating hikes mean higher fuel costs and possibly higher borrowing costs. In the short term, watch today’s Bank of Japan decision. Over the medium term, watch whether AI spending shows up in earnings, the Iran talks, and the December policy meetings at the Fed, ECB and BOJ.

Markets

  • Nasdaq Composite: closed at 26,184.73, down about 1.4%.
  • Dow Jones Industrial Average: 52,342.56, down about 0.25%. The S&P 500 fell about 0.3%.
  • Nikkei 225 (Thursday close): 64,659.47, up 705.28 points or 1.10%, a third straight gain.
  • USD/JPY: about 157.71 yen at the New York close.
  • Oil: WTI near $102.8 a barrel; Brent around $114.
  • Europe: The ECB held its deposit rate at 2.5% with euro zone inflation at 3.8%, and President Christine Lagarde said she will step down on February 7, 2027. French 10-year yields are around 5%.

Stocks in Focus

  • Alphabet: worst day in its history by value lost, on a sales miss and AI-spending worries.
  • ServiceNow / Fortinet: sharp drops after earnings fuel fears over software profits.
  • Advantest (Japan): up about 6% after raising its forecast.

Not a recommendation to buy or sell any stock.

Sources:

Auto-generated and AI-written. Not investment advice.