Asian shares fall as Alphabet earnings miss drags Wall Street futures lower
SPY•Asian shares fell as Alphabet’s hefty cash burn sent its shares down 10% in after-hours trading and Nasdaq futures lower by 1%. Samsung shares slid more than 4% despite record quarterly operating profit, while investors awaited Amazon and Intel results and an ECB decision.
1. Earnings move markets
Asian shares gave up earlier gains on Thursday after mixed AI-related earnings announcements. Alphabet shares fell 10% in after-hours trading, wiping nearly $400 billion off its market value and dragging Nasdaq futures down 1%; Microsoft rose 3% after beating forecasts with better-than-expected cash flows.
2. Asian stocks mixed
Samsung Electronics reported third-quarter operating profit up nearly ninefold to a record, driven by demand for AI chips, but its shares fell more than 4%. South Korea’s KOSPI dropped 2.6%, while the regional index of Asia-Pacific shares outside Japan fell 0.7%; Japan’s Nikkei was up 0.3%.
3. Rates and data ahead
The Federal Reserve held rates steady, though two members voted for a hike, and markets were pricing an 80% chance of a December increase. Investors awaited September US PCE inflation data, Amazon and Intel results, and an expected ECB decision to hold rates; Brent crude fell 0.4% to $114.91 a barrel.
