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Stocks dip with chipmakers; gold hits record high

Published 2024/10/30, 04:44
Updated 2024/10/30, 22:01
© Reuters. FILE PHOTO: A visitor walks past Japan's Nikkei stock prices quotation board inside a building in Tokyo, Japan February 19, 2024. REUTERS/Issei Kato/File Photo
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By Caroline Valetkevitch

NEW YORK (Reuters) -Global stock indexes edged lower on Wednesday as a disappointing forecast from Advanced Micro Devices (NASDAQ:AMD) weighed on chipmakers, while gold prices rose to a record high as uncertainty ahead of next week's U.S. presidential election drove safe-haven demand.

British stocks hit their lowest level since August as UK Finance Minister Rachel Reeves said she would raise taxes by 40 billion pounds a year ($52 billion) in her first budget.

Shares of Alphabet (NASDAQ:GOOGL) rose more than 3% after the company late Tuesday reported quarterly revenue that beat estimates.

On the flip side, shares of semiconductor company Advanced Micro Devices dropped 9.9% after its revenue forecasts and artificial intelligence chip sales disappointed investors. Other chipmakers also slipped, with Nvidia (NASDAQ:NVDA) down 1.3%.

Facebook owner Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) report earnings later in the day, followed by Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) on Thursday.

"The market is heavily focused on what these companies are going to deliver, their guidance and any signal that perhaps their purchases of AI-related infrastructure could change," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.

Stocks are up sharply for the year so far, and Krosby said upbeat results from the megacap names will help to support the overall market.

The Dow Jones Industrial Average rose 0.20 points to 42,233.25, the S&P 500 fell 7.55 points, or 0.13%, to 5,825.37 and the Nasdaq Composite slid 44.27 points, or 0.24%, to 18,668.48.

MSCI's gauge of stocks across the globe fell 2.20 points, or 0.26%, to 845.88. The STOXX 600 index fell 1.25%, while the FTSE 100 dropped 0.7%. Shares of Italian spirit maker Campari (LON:0ROY) slumped after missing forecasts.

Gold rose to an all-time high as uncertainty over the Nov. 5 U.S. presidential election boosted safe-haven demand.

A recent Reuters/Ipsos poll showed Vice President Kamala Harris, a Democrat, leading Republican Donald Trump 44% to 43% among registered voters nationally, within the margin of error. Other opinion polls show tight margins in the seven election battleground states.

Among riskier assets, bitcoin was down slightly after surging to near its all-time high from March as investors weighed the prospect of a victory by Trump, widely seen as favorable towards crypto.

"Bitcoin has been considered an important barometer for liquidity in the market," Krosby said, adding that its recent gains have been "associated with a Trump victory."

Bitcoin was last down 0.71% at $71,799.00.

The dollar edged down against other major currencies as stronger-than-expected U.S. private payrolls data and the UK budget release set off choppy trading as investors awaited clues about the future policy paths of their respective central banks.

Data showed U.S. private payrolls growth surged in October. The key U.S. jobs report for October is due on Friday.

The U.S. dollar index, which measures the currency against six major rivals, rose to 104.43 earlier in the session but was last down 0.16% at 104.07.

Sterling weakened 0.33% to $1.2972.

Benchmark 10-year U.S. Treasury yields were little changed.

Investors were also digesting data showing the euro zone grew faster than expected last quarter. A separate report showed the U.S. economy had maintained steady third-quarter growth.

© Reuters. The logo of Google LLC is shown on a building in San Diego, California, U.S., October 9, 2024. REUTERS/Mike Blake/File Photo

In the energy market, oil prices rebounded from declines earlier in the week. Data on Wednesday showed U.S. crude and gasoline inventories fell unexpectedly last week.

Brent crude futures settled up $1.43, or 2.01%, at $72.55 a barrel. U.S. West Texas Intermediate crude rose $1.4, or 2.08%, to $68.61.

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