October markets saw expectations for AI-related stocks turn downward, with volatile trading continuing, particularly in U.S. equities. At the end of the month, Japanese and U.S. markets fell again under the impact of earnings results from major technology companies.
U.S. stocks generally trended lower in October, with the Nasdaq Composite down approximately 5.3% for the month and the Nikkei Average estimated to have fallen approximately 5.2%. The S&P 500 fell by approximately 1%, while the Dow posted a modest gain. Selling was concentrated in technology stocks.
In mid-October, developments in U.S. labor-market indicators and financial concerns surrounding AI data-center businesses moved market sentiment. The September CPI exceeded market expectations, spreading the view that expectations for additional Fed rate hikes were strengthening and deepening declines in both Japanese and U.S. markets.
Earnings shocks weighed on markets toward the end of the month. The Fed left interest rates unchanged, but Alphabet fell approximately 12% and Intel approximately 28.6%, marking significant year-to-date declines. In Japan, declines in semiconductor-related stocks weighed on the indexes, while イビデン hit its daily price limit on the downside.
The impact also spread to cryptocurrency markets. Reports of a Binance hack emerged on 29 October, and BTC traded generally near $77,000 at the end of the month. The market is gradually moving into a phase in which the results of AI investment are being demonstrated in financial figures, and it has been suggested that attention in November may focus on the impact of key indicators, interest-rate trends and policy decisions.