TradingKey Daily Market Briefing: PCE Inflation Rises to 3.6%, Alphabet Plunges 12.6% Dragging Down Nasdaq, Amazon and Intel Shares Weaken

Tracking Market Trends

TradingKey - On October 29 Eastern Time, the three major US stock indices retreated across the board. A sharp post-earnings drop in Google parent Alphabet (GOOGL) dragged down tech stocks as the market reassessed heavy AI infrastructure spending and cash flow pressures; however, about 80% of S&P 500 components still closed higher, indicating that the sell-off was mainly concentrated in mega-cap tech stocks.

The Dow Jones Industrial Average fell 0.25% to close at 52,348.24 points; the S&P 500 Index dropped 0.30% to close at 7,720.39 points; and the Nasdaq Composite Index fell 1.38% to close at 26,184.72 points.

In terms of individual stocks, Google parent Alphabet fell 12.64%, posting its worst single-day performance since going public. Its quarterly capital expenditures surpassed $51 billion while free cash flow turned negative, heightening market concerns over the return cycle of AI investments. Amazon (AMZN) and Intel (INTC), which reported results after the bell, also weakened.

In commodities, gold (XAUUSD) fell 1.15% to close at $4,021.52; Brent crude (UKOIL) rose 0.76% to close at $111.59; WTI crude (USOIL) gained 0.88% to close at $102.85. Market expectations of resumed US-Iran negotiations eased some Middle East supply concerns.

In cryptocurrencies, as of the Asian trading session on October 30, Bitcoin (BTC) traded at around $77,000, down about 1.2%, falling below $80,000 once again.

Market News

U.S. Q3 GDP grows at an annualized rate of 3.4%. Initial estimates released by the U.S. Bureau of Economic Analysis show that real GDP grew at an annualized rate of 3.4% in the third quarter, up from 2.2% in the second quarter. Investment, consumption, and government spending were the main drivers, while a decline in exports exerted a partial drag.

U.S. September PCE inflation rises to 3.6%. The PCE price index rose 0.5% month-over-month and 3.6% year-over-year in September; core PCE rose 0.3% month-over-month and 3.1% year-over-year. Over the same period, personal consumption expenditures grew 0.5% month-over-month, while real consumption expenditures were essentially flat.

Amazon AWS revenue grows 39.3% as capital expenditures remain high. Amazon's third-quarter net sales grew 12% to $201.9 billion, AWS revenue increased 39.3% to $46 billion, and operating income rose to $28.1 billion. The company expects cash capital expenditures of approximately $220 billion in 2026, with trailing 12-month free cash flow showing an outflow of $42.4 billion.

Intel's third-quarter revenue grows 21%, but fourth-quarter guidance is weak. Intel's third-quarter revenue was $16.5 billion, up 21% year-over-year; Data Center and AI revenue reached $7.3 billion, up 78% year-over-year. The company expects fourth-quarter revenue of $15 billion to $16 billion and non-GAAP earnings per share of $0.25.

Top 10 Most Active Stocks

The table below lists the ten most actively traded stocks in the latest market. Supported by massive trading volumes and exceptional liquidity, these assets have become key benchmarks for tracking global market dynamics.