Earnings Misses at Samsung and Alphabet Drag U.S. Tech Futures Lower
Nasdaq futures fell by more than 1% following Q3 earnings misses from Samsung and Alphabet, combining with Federal Reserve signals of potential interest rate hikes to pull equity markets lower before the opening bell in New York, fortune.com reported.
Samsung Chipmaking and Alphabet Search Pressures
Samsung shares declined 4% in South Korea as its chipmaking division posted lower operating profit than expected. Alphabet lost 10% in overnight trading after search ad revenue missed forecasts, raising investor concerns that artificial intelligence overlays are cannibalizing its core search business. Google Cloud revenue beat expectations, but David Wagner of Aptus Capital Advisors told fortune.com that while the cloud division did what it was supposed to, “The problem is everything else.” Microsoft moved in the opposite direction, beating revenue expectations while lowering its capital expenditure guidance, sending its stock up 3.39% overnight.
ASIA OVERNIGHT — THURSDAY, OCTOBER 29, 2026ASIAN TECH STOCKS ARE FALLING AFTER ALPHABET AND SAMSUNG'S EARNINGS. BUT THE BIGGER STORY IS WHAT THE MARKET IS REWARDING AND PUNISHING.Good morning.Thursday's early trading is revealing an interesting divergence across the AI trade.…
Federal Reserve Interest Rate Outlook
The U.S. Federal Reserve held interest rates steady, but Fed chair Kevin Warsh signaled that rate hikes remain likely ahead. “My blunt take is that there should have been a rate hike,” SoFi’s Liz Thomas told fortune.com in an email, pointing to high oil prices driven by the war in Iran as a persistent inflation driver. Thomas noted that the Fed may need to consider a 50 basis point hike in December to catch up. Fed chair Kevin Warsh also stated he will hold fewer rate-setting meetings next year, drawing criticism from UBS’s Paul Donovan, who told clients that reduced policy flexibility during economic and political turmoil is an unusual choice.
Global Market Responses and Goldman Sachs Outlook
U.S. S&P 500 futures fell 0.3% following a 0.28% rise the previous day. In Europe, the Stoxx 600 rose 0.4% in early trading and the U.K.’s FTSE 100 gained 0.31%. Across Asia, South Korea’s KOSPI dropped 1.24%, Japan’s Nikkei 225 rose 1.1%, India’s Nifty 50 advanced 1.08%, and China’s CSI 300 fell 1.03%. Brent crude traded at $114 per barrel, and Bitcoin stood at $80,029. Despite concerns over higher borrowing costs from potential Federal Reserve rate increases, Goldman Sachs strategist Vickie Chang noted that equities typically recover quickly after initial tightening cycles, usually troughing within two months and recovering within four months.
