Market Outlook and Sector Rotation
Futures for the S&P/ASX 200 pointed to a firmer open on Oct. 30, 2026, following a significant rotation on Wall Street away from big technology companies and into defensive sectors. The shift in investor sentiment was driven by disappointing results from major U.S. tech firms, which revived doubts regarding the returns on artificial intelligence spending.
Alphabet suffered a record one-day market value wipeout after missing on search revenue targets and reporting negative cash generation. The company’s slide hit communication services hard, prompting traders to seek safety in other areas of the broader market. Healthcare, real estate, and consumer staples led gains during this period.
Woolworths (ASX:WOW) and other defensive stocks drew interest from investors looking for stability amid the tech selloff. The ten-year Treasury yield eased to its lowest level in several weeks as bonds caught a haven bid, reflecting the broader market’s risk-off posture.
Tech Earnings and Corporate Developments
The technology sector faced broad pressure following mixed corporate results. Amazon’s shares fell after hours as its earnings and fourth-quarter guidance disappointed investors. Software companies also saw sharp declines; Fortinet and ServiceNow each dropped significantly after reporting their respective results.
Intel’s guidance trailed expectations due to weaker personal computer demand and a plant explosion, causing its shares to fall after hours. Meanwhile, Caterpillar’s guidance disappointed those betting on AI data centre power demand, despite the company reporting a record order book.
In contrast, Eli Lilly raised its full-year revenue guidance after a strong quarter, and its shares rose. Marvell is reportedly in advanced talks to acquire an optical parts maker, signaling continued consolidation activity within the semiconductor supply chain.
Global Macro and Commodity Moves
Markets trimmed the odds of a December Federal Reserve rate rise after in-line inflation data and stronger-than-expected economic growth were released. Trump held off on tariffs for robotics and industrial machinery while officials negotiate with trading partners, adding to the complex geopolitical backdrop.
In energy markets, oil edged higher even as the United States reportedly reached out to Iran to restart peace talks. Possible further strikes kept supply risk alive, particularly after Iran’s Revolutionary Guards said three tankers struck mines south of the Strait of Hormuz. Shell lifted its quarterly share reduction program on a surge in refining margins linked to this disruption.
On the commodities front, Capstone Copper reported record quarterly operating earnings, marking its eighth straight record, with copper output and a concentrator tie-in completed. Civmec also reported strong revenue and earnings growth, supported by a larger order book.
Central Bank and Corporate Debt
The European Central Bank left rates unchanged after debating a rise, and its president will step down early next year. In corporate finance, Microsoft drew heavy demand for a very large bond sale, serving as a test of appetite for debt funding the AI build-out.