Chip Stocks Crash 7% as Apple and Palantir Report Tonight

Chip stocks crashed 7% on Friday as Intel fell 29%. Apple and Palantir report tonight, AMD on Wednesday, and US midterms and the jobs report fill the week.

TLDR

• Tech had its worst day in weeks on Friday. The chip index fell 7.20%, the Nasdaq Composite dropped 2.86% to 25,437.00 and the S&P 500 fell 1.82% to 7,580.07.
• Intel crashed 28.58% to $65.76 after a weak Q4 outlook, its worst day since 1974. AMD fell 10.88% and Nvidia 4.22%.
• Monday brought a partial bounce. US futures edged higher, KOSPI rose 2.24% and oil fell more than 3%.
• Apple and Palantir report at 3:30 AM IST Tuesday. Americans vote in the midterm elections on Tuesday, and AMD reports at 3:30 AM IST Wednesday.
• Anthropic pre-IPO trading is live on the CoinDCX app.

Market Regime

Last week settled one question: Wall Street will no longer pay for AI spending on faith. Alphabet, Amazon and Intel all reported growth and were still sold hard, because spending is running ahead of returns or the next quarter looks weaker. Friday turned that into a broad chip selloff. The chip index fell 7.20% in a single session and the VIX jumped 12.91% to 19.42.

This week tests whether Friday was a reset or the start of something bigger. Apple reports tonight, AMD on Wednesday morning India time, and Qualcomm and Arm on Thursday morning. Around them sit the US midterm elections on Tuesday and the jobs report on Friday at 7:00 PM IST. Investors want results that show AI spending turning into revenue, and any sign that it is not will likely hit chips again.

Bullish Factors

• A bounce is under way. US futures edged higher on Monday and KOSPI rose 2.24%, led by SK Hynix, up 4.2%.
• Oil eased. Brent fell 3.3% to about $109.66 as Iranian negotiators discussed a proposal that could reopen the Strait of Hormuz.
• Bond yields fell. The US 10-year yield slipped 4 basis points to 4.94% on Friday as money moved into Treasuries.
• Midterm seasonality. The S&P 500 has averaged a gain of about 2% in November of midterm years.
• Some winners. Rivian rose 6.20% on Friday after its beat, and Eli Lilly raised its full-year outlook.

Bearish Factors

• Chip selloff. The chip index fell 7.20% on Friday, with Intel down 28.58% and AMD down 10.88%.
• Earnings are being sold. Reddit fell 29.22% and SanDisk 13.47% after their reports. SanDisk had beaten its own forecast.
• Volatility is back. The VIX rose 12.91% to 19.42.
• Political risk. Tuesday’s midterms could shift the outlook for spending, tariffs and tech regulation.
• Rate risk. A strong jobs report on Friday would raise the odds of a December Fed hike.

Asian Markets This Morning

Asia split on Monday. KOSPI rose 2.24% after Friday’s 3.48% drop, with SK Hynix up 4.2% and Samsung Electronics up 1.7% as traders bought back into memory makers. China’s Shanghai Composite rose 1.2% and Hong Kong’s Hang Seng gained 0.6%.

Japan lagged. The Nikkei 225 was flat to slightly lower around 63,218 by midday after giving up early gains. Kioxia, the Japanese memory maker, fell about 14% after its earnings forecast disappointed, and SoftBank Group slipped 1.8%. Taiwan’s Taiex was down 0.2%, with TSMC off 1.5%.

What Moved Wall Street Today

• US indices closed sharply lower on Friday. S&P 500 7,580.07 (-1.82%), Nasdaq Composite 25,437.00 (-2.86%), Dow 51,770.31 (-1.09%), Russell 2000 2,811.84 (-1.66%).
• The Philadelphia Semiconductor Index fell 7.20% to 10,688.80.
• Intel fell 28.58% to $65.76, its worst day since 1974, after guiding Q4 revenue to $15B to $16B against about $17B expected.
• AMD fell 10.88% to $504.80 and Nvidia 4.22% to $204.64 as the chip selloff spread.
• Reddit fell 29.22% and SanDisk 13.47% after earnings. Palantir fell 6.27% to $184.11 and Apple 1.23% to $344.63 ahead of their reports.
• WTI crude rose 2.08% to $104.12 and Brent 2.37% to $113.43 on Friday, before falling on Monday.

Assets in Focus

AAPL (Apple)

Apple reports its fiscal Q4 at 3:30 AM IST Tuesday. Analysts expect sales of about $113.6B, up about 10%. The stock fell 1.23% to $344.63 on Friday but is still up about 28% this year. After last week, investors will look at guidance and spending first. The 28 October close of $343.83 and the 29 October close of $348.91 are reference points for context, not entry or exit signals.

PLTR (Palantir)

Palantir also reports at 3:30 AM IST Tuesday, with analysts expecting about $2.18B in sales. The stock fell 6.27% to $184.11 on Friday as AI software sold off with chips. Palantir is the first AI software report since the selloff, so its outlook will be read across the group.

AMD

AMD fell 10.88% to $504.80 on Friday, and it reports at 3:30 AM IST Wednesday. It is the next big chip report after Intel’s guidance shock, and its data center outlook will set the tone for the group. Its 29 October close of $566.42 is the nearest reference point above.

NVDA (Nvidia)

Nvidia fell 4.22% to $204.64 on Friday, a smaller drop than most chip stocks. Its 29 October close of $213.66 is the nearest reference point above. AMD’s results on Wednesday are the next test before Nvidia’s own report on 18 November at 3:30 AM IST.

Anthropic (Pre-IPO)

Anthropic pre-IPO trading is live on the CoinDCX app. The company filed last week to list on the Nasdaq under the ticker ANT, following a private round that valued it at $965B, with the listing reported for the week of 16 November. It gives traders a way to take a view on a leading AI company before it lists.

Index Levels to Watch

• S&P 500: 7,580.07 (-1.82%). Wednesday’s record close of 7,743.98 is the nearest reference point above.
• Nasdaq Composite: 25,437.00 (-2.86%), down from 26,549.85 on Wednesday.
• Dow Jones: 51,770.31 (-1.09%), less exposed to the chip selloff.
• Philadelphia Semiconductor Index: 10,688.80 (-7.20%), the group to watch around AMD on Wednesday.
• VIX: 19.42 (+12.91%), up sharply as investors bought protection.
• US 10-year yield: 4.94%, which Friday’s jobs report can push either way.

Disclaimer

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