Opening Comment — Friday, October 30, 2026
DJIA: 52,342.56, down 132.54
S&P 500: 7,720.39, up 21.38
NASDAQ: 26,184.72, down 365.13
Stocks mixed as AI spending concerns rise
Stock futures are mixed Friday morning following the latest quarterly results and investors questioning the sustainability of artificial intelligence (AI) spending. Meanwhile, today’s economic events include the third-quarter Employment Cost Index and a slew of Federal Reserve (Fed) speakers scheduled for today. Looking ahead, investors will focus on next week’s Institute for Supply Management (ISM) Purchasing Managers’ Index (PMI) releases early in the week, followed by the jobs report and the preliminary University of Michigan consumer sentiment reading on Friday. As of 7:32 AM ET, the Dow is rising 0.1%, while the S&P 500 is down 1.0%. The Nasdaq 100 is falling 2.5% relative to fair value on the GLOBEX.
U.S. equities were lower on Thursday as personal income and personal spending rose less than expected in September, increasing 0.2% and 0.5% month-over-month (MOM), respectively. Meanwhile, the Personal Consumption Expenditures (PCE) Price Index rose 0.5% MOM and 3.6% year-over-year (YOY), both in line with expectations, while the core PCE Price Index increased 0.3% MOM and 3.1% YOY, also matching expectations. The advanced reading of third-quarter gross domestic product (GDP) showed the economy expanding more than expected at an annualized rate of 3.4%, while personal consumption rose 3.8%, similar to the prior quarter’s growth. Initial jobless claims came in lower than expected, while continuing claims for the prior week eased. The Dow was down 0.3%, while the tech-heavy Nasdaq Composite fell 1.4%. The S&P 500 decreased 0.3% with three of 11 sectors finishing in negative territory. The Health Care sector was the top performer, rising 2.5%, while the Communication Services sector was the bottom performer, falling 6.6%.
Technical Analysis:
As of midday Thursday, the S&P 500 Index is still in an uptrend. Resistance is at the recent high of 7,845, while support lies at the 50-day and 200-day moving averages of 7,698 and 7,306, respectively.
On the data front, the third-quarter Employment Cost Index is projected to decelerate to 0.8% quarter-over-quarter (QOQ) compared to the prior reading of 0.9%. The Market News International Chicago PMI for October is expected to come in at 56.0, down from the prior month’s 58.8.
Across the pond, European stocks are mixed in mid-day trading as France’s preliminary reading of third-quarter GDP unexpectedly contracted 0.1% both QOQ and YOY, defying expectations for growth. Meanwhile, France’s preliminary October Consumer Price Index (CPI) rose more than expected, rising 0.4% MOM and 3.4% YOY, while the September Producer Price Index (PPI) accelerated to 1.7% MOM and 6.8% YOY. Additionally, Germany’s preliminary reading of third-quarter GDP rose more than expected, increasing 0.2% QOQ and 1.3% on a non-seasonally adjusted YOY basis. The country’s unemployment change increased by a less-than-expected 4,000 in October, while the unemployment rate remained unchanged at 6.4%. The U.K.’s Nationwide House Price Index showed little change MOM in October, while prices rose by a less-than-expected 0.5% YOY. The advance reading of eurozone GDP grew more than expected in the third quarter, rising 0.4% QOQ and 1.3% YOY, while the unemployment rate held steady at 6.5% in September, following an upward revision to the prior month’s reading.
Overnight in Asia, stocks were mixed as Tokyo’s CPI accelerated to 2.8% YOY in October, against expectations of holding steady, while core CPI eased more than expected to 2.6% YOY. Meanwhile, Japan’s preliminary industrial production rose more than expected in September, increasing 2.2% MOM and 1.9% YOY. The country’s jobless rate unexpectedly declined to 2.4% in September, while the job-to-applicant ratio edged higher to 1.19, against expectations of no change in both indicators. Japanese September retail sales unexpectedly declined 0.7% MOM, while registering a smaller-than-forecasted increase of 2.3% YOY. Australia’s third-quarter PPI rose 1.1% QOQ and 3.6% YOY. Australia’s private sector credit rose above expectations, increasing 0.6% MOM in September and 8.4% YOY. South Korea’s industrial production increased more than expected, rising 9.0% MOM and 1.2% YOY in September.
In FOREX trading, the U.S. dollar is lower following the European Central Bank and the Bank of Japan’s decisions to keep their benchmark interest rates steady.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.2% higher at $104.28/barrel and Brent crude oil is up 2.5% at $117.70/barrel amid heightened tensions around the Strait of Hormuz.
In the metals complex, gold is 1.0% lower at $3,980.79/ounce despite a weakening U.S. dollar.