Alphabet shares slump after weak results while Microsoft gains
Shares of Google parent Alphabet fell about 10% in after-hours trading as quarterly revenue disappointed investors, while Microsoft gained nearly 3%. Asian markets finished mixed.
The latest quarterly results from US technology giants have rattled financial markets, where investor expectations are high because of the global boom in artificial intelligence (AI). Shares of California-based Alphabet, the parent company of Google, fell about 10% in after-hours trading following Wednesday's Wall Street session. Its quarterly revenue disappointed investors, raising doubts over whether the company can generate enough sales to justify its massive AI spending.
Microsoft, by contrast, rose almost 3% after hours, having reported better-than-expected earnings.
US stocks and bonds
On Wednesday, the S&P 500, Wall Street's benchmark index, added 0.3%, the Dow Jones Industrial Average gained 0.2%, and the technology-heavy Nasdaq composite rose 0.3%. The yield on the 10-year US Treasury eased below 5.00% after briefly touching about 5.04%. The two-year yield steadied at 4.68%.
The US Federal Reserve, the country's central bank, held interest rates steady, as expected. Two of its officials favoured a hike, and analysts say a December increase is likely because inflation remains too high. Markets are awaiting the outcome of a European Central Bank meeting later today, while the Bank of Japan is expected to leave rates unchanged on Friday.
Oil and currencies
Brent crude, the international benchmark, fell 1.2% to $110.32 a barrel. Before the Iran war began in late February, it stood at around $72. US crude dropped 1.3% to $101.46. Prices eased even though US officials warned that renewed military action against Iran could follow the 3 November midterm elections. The euro traded at $1.1146, and the dollar was at 157.72 Japanese yen.
Asia
Japan's Nikkei 225 edged up 0.2% to 64,073.17. South Korea's Kospi lost 2.2% to 5,880.25; Samsung Electronics sank 5.4% despite strong quarterly results, as some investors were unhappy with its shareholder return policy. SK Hynix rose 1.6% after soaring 10.9% the previous day. Taiwan's Taiex fell 1.9%, Hong Kong's Hang Seng was less than 0.1% higher at 23,101.86, the Shanghai Composite shed 0.9%, and Australia's S&P/ASX 200 gained 0.5%.
