Date: 30th October 2026.
NASDAQ Crashes: Poor Tech Earnings, Rising Inflation & Market Sell-Off.
Friday has been a challenging day for markets, with stocks, the US Dollar and Gold all trading lower. Driving the downward price movement is poor earnings across multiple key companies, high inflation, and the midterm elections.
As most assets decline, the main beneficiaries are bonds and Oil. The rise in bonds is a direct result of the change in market mood as investors opt to increase exposure to ‘risk-off’ assets. The US 10-year Treasury bond is now trading at its highest level since early September.
Amazon, Intel and Poor Tech Earnings
The latest earnings reports to pressure market sentiment and continue to derail the AI trend are from Amazon and Intel. Amazon stock, the fifth most influential stock in the NASDAQ, fell more than 11.50% over the past 24 hours. Intel shares also fell a staggering 23.00%.
Intel stock, which has been one of the best-performing stocks in the NASDAQ in 2026, fell significantly after its earnings guidance. The stock had been trading with a 133.80% increase in 2026. However, the stock has been struggling since May and saw one of its largest declines overnight.
Intel’s earnings data actually came in slightly above market expectations, but its forecasts were lower. Intel forecast revenue of $15–16 billion, below analysts’ expectations of approximately $17 billion. Investors remain concerned about weakening PC demand, rising memory costs, and manufacturing constraints.
Furthermore, Amazon’s earnings report had some positives, but they were overshadowed by negative factors. Strong growth in its cloud computing division was a positive factor. However, the company saw substantial AI spending, weak guidance for the next quarter, and slightly lower earnings.
The week has been marked by disappointing earnings reports, not only in the technology sector but across multiple industries. Within the tech sector, Alphabet, Amazon, Intel, and Fortinet were among the main disappointments, while Caterpillar, Boeing, and DaVita also faced negative market reactions. Even companies that reported positive earnings, such as Microsoft, initially saw their shares rise, only for broader negative market sentiment to erase those gains.
Major companies will continue to release their earnings reports next week, potentially influencing the NASDAQ’s performance and broader stock market movements. Apple, Quacomm, and AMD are the main influential companies. If these companies also fail to impress investors, selling pressure on the NASDAQ could intensify significantly, particularly if Apple, the index’s second most influential stock, experiences a decline.
SpaceX & Anthropic
Another stock in the spotlight is SpaceX, following Anthropic. SpaceX stock fell 0.95% on Thursday and a further 2.45% after hours. Bloomberg has learned that Anthropic is SpaceX's largest single customer, accounting for more than a third of its revenue.
Anthropic has also overtaken the federal government, which was thought to be the main source of income. This underscores SpaceX’s exposure to a client with the contractual ability to exit the deal as soon as next year.
SpaceX currently holds a weighting of 4.70%, meaning a decline could pressure the NASDAQ. Currently, among the NASDAQ’s most influential companies, 75% are declining, and the top five most volatile stocks are all declining. Simultaneously, the VIX index is trading more than 5.00% higher on Friday, pointing towards a clear ‘risk-off’ sentiment.
PCE Inflation & Economic Stability
Other than earnings data, economic releases are also applying pressure on the stock market. The US economy grew faster than previously expected, while the Core PCE inflation rate continues to rise. As a result, the Federal Reserve is likely to hike on two occasions over the next six months.
The US Advance GDP figure for the quarter rose from a 1.5% increase to a 3.4% and beat expectations by 0.2%. The Core PCE Price Index rose 0.3%, above the 0.2%, which the Federal Reserve would like to see as a maximum. US weekly unemployment claims also came in slightly softer adding only 195,000 claims.
Simultaneously, oil prices are again on the rise as Middle East tensions increase and markets expect renewed attacks after the US midterms. Crude Oil prices are trading almost 1.00% higher on Friday and have risen above $104 per barrel.
The economic releases continue to point towards high inflation and further rate hikes from global central banks. This could pressure consumer demand and the attractiveness of the stock market.
NASDAQ - Technical Analysis
HFM - NASDAQ 4-Hour Charts
The NASDAQ has formed a bearish breakout and is now again trading below most moving averages on most charts. At the same time, the VWAP and cumulative delta data are pointing towards weakness in order flow. The price is now trading below the support level at $28,773.
As a result, most indicators continue to point towards bearish sentiment, while none of the timeframes are yet to indicate an oversold price. However, in the short term, for the sell signals to be erased, the price will need to rise above $28,932.95. At this level, the price will form a bullish breakout and cross above the key moving averages.
However, if the price remains below this level, the price will remain in the bearish zone for most indicators pointing towards a further decline. Key levels for the decline include the $28,250.00 psychological level and $27,086.00 support level.
Key Takeaways:
Disappointing earnings from Amazon, Intel, and other major companies weigh on investor sentiment.
Rising Core PCE inflation and strong US economic data increase expectations of further Fed rate hikes.
Escalating Middle East tensions push crude oil prices above $104 per barrel.
NASDAQ breaks below key support levels, with technical indicators suggesting further downside risks.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
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Michalis Efthymiou
HFMarkets
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