Market News Today Australia: US GDP Jumps 3.4%, Nasdaq Falls as Gold Slips
Key Takeaways
US GDP beats expectations: The US economy expanded at an annualised rate of 3.4% in Q3 2026, accelerating from 2.2% in the previous quarter.
Inflation remains elevated: September headline PCE inflation increased to 3.6% year-on-year, while core PCE reached 3.1%, keeping the Federal Reserve's interest rate outlook in focus.
Nasdaq leads Wall Street lower: The Nasdaq Composite declined approximately 1.4% as disappointing technology earnings reignited concerns about artificial intelligence spending.
Intel and Amazon face selling pressure: Intel shares plunged more than 20% in extended trading following weak guidance, while Amazon's substantial AI investment commitments raised questions about cash flow.
Gold approaches US$4,000: Gold declined towards the psychological US$4,000 level despite a weaker US dollar and falling Treasury yields.
Australian market implications: Volatility in US technology stocks, oil prices and interest rate expectations could influence the ASX 200, AUD/USD and commodity markets.
US Stock Market Today: Nasdaq Falls as AI Concerns Overshadow Strong GDP Growth
Global Market Overview: 29 October 2026
Wall Street ended Thursday, 29 October, in negative territory as investors weighed stronger-than-expected US economic growth against persistent inflation and renewed concerns over artificial intelligence investment.
The US economy expanded by an annualised 3.4% in the third quarter of 2026, exceeding market expectations and accelerating from the previous quarter's 2.2% growth rate.
However, the stronger economic outlook failed to support technology shares.
The Nasdaq Composite dropped approximately 1.4%, while the S&P 500 and Dow Jones Industrial Average recorded more modest losses.
Investors increasingly questioned whether the enormous capital expenditure associated with artificial intelligence infrastructure would generate sufficient returns to justify elevated technology stock valuations.
Alphabet's disappointing quarterly performance and accelerating AI-related spending weighed heavily on market sentiment. Additional concerns emerged following earnings announcements from Intel and Amazon.
For Australian investors, the renewed sell-off in US technology stocks could influence sentiment towards ASX-listed technology companies, data-centre operators and businesses exposed to the global AI investment cycle.
US GDP Growth Reaches 3.4%: What Does It Mean for the Federal Reserve?
The latest US economic figures suggest that the world's largest economy remains resilient despite elevated borrowing costs and energy-driven inflation pressures.
According to the US Bureau of Economic Analysis, real GDP expanded at an annualised rate of 3.4% in the third quarter.
Consumer spending grew at an annualised pace of 3.8%, while business investment remained strong, supported partly by spending on artificial intelligence infrastructure.
Key US Economic Data
The combination of resilient economic growth and elevated inflation presents a challenge for the Federal Reserve.
Although stronger growth reduces immediate recession concerns, persistent inflation may require policymakers to maintain restrictive monetary conditions for longer.
The Federal Reserve held interest rates unchanged at its October meeting, emphasising the need for additional economic information before determining its next policy move.
What should traders watch next?
Market participants will closely monitor incoming employment and inflation data, changes in US Treasury yields and expectations surrounding the December Federal Reserve meeting.
A more hawkish interest rate outlook could weigh on gold and interest-rate-sensitive technology stocks. Conversely, signs of easing inflation could provide support to risk assets, although the market response will also depend on economic growth and corporate earnings.
Nasdaq Today: Alphabet, Intel and Amazon Reignite AI Stock Valuation Concerns
The latest technology sector sell-off highlights a growing debate over the sustainability of AI-related capital expenditure.
Investors are increasingly distinguishing between companies generating measurable revenue from AI services and businesses committing large amounts of capital to infrastructure with uncertain near-term returns.
Alphabet Shares Plunge as AI Spending Raises Concerns
Google parent Alphabet suffered a sharp decline after its quarterly results disappointed investors.
The company's accelerating AI-related expenditure raised concerns about the relationship between infrastructure investment, profitability and future free cash flow.
The decline weighed on the Nasdaq and reinforced broader market uncertainty surrounding highly valued technology companies.
Intel Stock Drops More Than 20% After Weak Earnings Guidance
Intel shares plunged more than 20% in extended trading following the company's third-quarter earnings announcement.
Although Intel reported third-quarter revenue of approximately US$16.5 billion, up 21% year-on-year, its outlook disappointed investors.
The company forecast fourth-quarter revenue of US$15 billion to US$16 billion, below analysts' expectations of approximately US$17.1 billion.
Intel also projected adjusted earnings of US$0.25 per share, compared with market expectations of approximately US$0.43.
The company cited ongoing weakness in the PC market, manufacturing constraints and operational disruption at its Israeli production facility.
The disappointing guidance highlights the challenges facing semiconductor manufacturers despite continued investment in AI computing infrastructure.
Amazon Earnings: Strong AWS Growth but AI Capital Spending Raises Questions
Amazon reported third-quarter revenue of US$201.9 billion, representing 12% year-on-year growth.
Its Amazon Web Services division recorded particularly strong performance, with sales increasing approximately 39% to US$46 billion.
However, investors remained concerned about the company's substantial capital expenditure commitments.
Amazon maintained its expectation for approximately US$220 billion in capital expenditure during 2026, primarily supporting infrastructure expansion and artificial intelligence investment.
Its trailing twelve-month free cash flow declined to an outflow of US$42.4 billion.
While stronger cloud revenue demonstrates growing demand for computing infrastructure, the scale of spending raises questions about how quickly AI investment will translate into sustainable cash generation.
What this means for traders: Technology stocks may experience elevated volatility as investors reassess earnings forecasts, infrastructure costs and long-term AI profitability.
Gold Price Today: XAU/USD Falls Towards US$4,000 Despite Weaker Dollar
Gold remained under selling pressure on 29 October, declining approximately 1.15% to around US$4,020 per ounce in the reported spot-market snapshot.
The precious metal briefly approached US$4,005, placing the psychological US$4,000 level firmly in focus.
The decline was notable because US Treasury yields and the US dollar also weakened during the session.
Normally, falling bond yields and a weaker dollar can support gold by reducing its opportunity cost and making the metal more affordable for holders of other currencies.
However, gold failed to benefit significantly from these developments.
This divergence suggests that positioning, profit-taking and broader portfolio adjustments may have played a role alongside inflation and monetary policy expectations.
Gold Price Technical Outlook: Key Levels to Watch
These are indicative technical reference zones, not guaranteed support or resistance levels.
Bullish scenario: If gold stabilises above US$4,000 and reclaims US$4,050, buyers may attempt a recovery towards US$4,080–4,100.
Bearish scenario: A sustained break below US$4,000 could increase downside pressure and bring the US$3,950 region into focus.
WTI Oil Price Today: Crude Remains Above US$100 as Inflation Risks Persist
WTI crude oil remained elevated around US$102–103 per barrel during the 29 October session, reflecting continued uncertainty surrounding Middle East energy supplies.
Although hopes of regional de-escalation have periodically weighed on prices, the broader geopolitical environment remains a source of volatility.
Elevated crude prices are important because energy costs can influence transportation, manufacturing, consumer prices and inflation expectations.
The latest increase in US headline PCE inflation reinforces the importance of monitoring oil prices when assessing the Federal Reserve's monetary policy outlook.
WTI Crude Oil: Key Technical Levels
These levels are illustrative rather than confirmed trading signals.
For Australia, sustained oil prices above US$100 could support some energy producers while increasing cost pressures for transport-intensive businesses and consumers.
AUD/USD and ASX 200 Outlook: What Does the US Market Sell-Off Mean for Australia?
The combination of stronger US growth, elevated inflation and renewed technology sector volatility could have several implications for Australian financial markets.
1. AUD/USD Could Remain Sensitive to US Interest Rate Expectations
The Australian dollar is influenced by several factors, including US dollar movements, relative interest rate expectations, commodity prices and global risk appetite.
A weaker US Dollar Index could provide some support for AUD/USD.
However, persistent uncertainty surrounding the Federal Reserve and global equity markets could limit the Australian dollar's recovery.
Australian traders should monitor upcoming US economic releases alongside Reserve Bank of Australia policy expectations.
2. ASX Technology Shares Could Face Renewed Pressure
The sharp decline in US technology stocks may influence sentiment towards Australian technology companies and AI-related infrastructure businesses.
Investors may become more selective about companies with substantial capital expenditure requirements, particularly where revenue growth has yet to translate into stronger cash flow.
3. Energy and Resources Stocks Could React Differently
Elevated oil prices may benefit selected Australian energy producers through stronger realised commodity prices.
However, higher energy costs can also increase inflation pressures and operating expenses across other sectors.
Gold miners may respond to a combination of US-dollar gold prices, AUD/USD movements, production costs and company-specific developments.
As a result, movements in the ASX 200 may differ from those seen in US equity indices.
Global Economic News: ECB Holds Rates as Bank of Japan Decision Approaches
European Central Bank Maintains Policy Rate
The European Central Bank kept its relevant policy rate unchanged at 2.5%, according to the latest policy announcement.
The decision reflects a challenging environment in which elevated energy prices threaten to increase inflation while economic growth shows signs of slowing.
Investors continue to assess whether additional monetary tightening may be required if higher energy costs spread into broader consumer prices.
Bank of Japan in Focus
The Bank of Japan's upcoming policy decision remains an important event for currency markets.
Market participants are watching for indications of whether policymakers may adopt a more restrictive stance in response to underlying inflation pressures.
Any unexpected policy signals could affect USD/JPY, Japanese government bond yields and broader global risk sentiment.
For Australian traders, significant movements in the Japanese yen can also influence regional currency markets and cross-border investment flows.
Economic Calendar: Key Events to Watch on 30 October 2026
Trading Opportunities to Watch: Gold, Nasdaq, Oil and Forex
Recent market developments have created several important themes for CFD traders.
Gold CFDs (XAU/USD): The US$4,000 psychological level remains central to the short-term outlook. Traders may monitor whether prices stabilise above support or extend their decline.
US Tech Index CFDs: The Nasdaq's sell-off highlights the sensitivity of technology shares to earnings results, AI infrastructure spending and changing valuation expectations.
Oil CFDs: WTI prices above US$100 may remain sensitive to geopolitical developments and changes in global supply expectations.
Forex CFDs: AUD/USD and USD/JPY could react to shifts in central bank expectations and global risk sentiment.
CFDs allow traders to speculate on rising or falling prices without owning the underlying asset. However, leverage magnifies both gains and losses, and volatile markets can lead to rapid losses.
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Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.
