Global Markets: Equities and bond yields dip with AI jitters and economic data in focus

ServiceNow

29/10/2026 21:31

Updates prices after US market close
Nasdaq slides 1.37% as Alphabet, ServiceNow and Fortinet drop on AI spending concerns
US 10-year Treasury yield falls 10.6 basis points to 4.939% after GDP and inflation data
Pan-European STOXX 600 rises 0.77% after ECB leaves key rate unchanged at 2.5%
By Sinéad Carew and Marc Jones
NEW YORK/LONDON, Oct 29 (Reuters) - Wall Street equity indexes dipped on Thursday as AI jitters offset some encouraging economic data while Europe's stocks rallied as the European Central Bank paused its run of rate hikes. 
US Treasury yields eased after data showed that the US economy grew faster than expected in the third quarter as resilient consumer spending and AI-driven business investment outweighed the impact of higher oil prices stemming from the conflict in the Middle East. However, oil prices fell on the day as hopes for peace talks took the edge off renewed concerns about supply disruptions from the escalating conflict.
Europe's STOXX 600 .STOXX rallied after the ECB kept its key rate at 2.5%. Also, ECB President Christine Lagarde confirmed, after months of speculation, that she would leave her post in February.
But on Wall Street, the Nasdaq finished down more than 1% while Alphabet GOOGL.O sold off sharply after it revealed a hefty AI-related cash burn in its quarterly report, issued after market close on Wednesday. Also, software companies ServiceNow NOW.N and Fortinet FTNT.O both tumbled more than 20% after their financial updates. 
     "Even though markets are down today and reacting negatively to earnings such as Alphabet, ServiceNow, and some other stocks, we also got a GDP number that suggests the fundamentals of the economy are still strong," said Anthony Saglimbene, chief market strategist at Ameriprise. 
"Consumer spending accelerated. Business investment accelerated. These are the things that still suggest the economy and the fundamental picture are strong despite some weaker trading today around the AI narrative." 
However, quarterly reports from Intel INTC.O and Amazon AMZN.O, released after US markets closed, provided little reassurance. Intel shares tumbled more than 17% after the bell following its release of weak results and financial guidance, and other chip companies fell in sympathy.
Amazon.com shares fell more than 5% in late trade after it reported a massive cash burn in the third quarter and forecast holiday-quarter revenue largely below Wall Street estimates.
On Wall Street, the Dow Jones Industrial Average .DJI fell 132.54 points, or 0.25%, to 52,342.56, the S&P 500 .SPX fell 23.59 points, or 0.30%, to 7,720.39 and the Nasdaq Composite .IXIC fell 365.13 points, or 1.37%, to 26,184.72. 
MSCI's gauge of stocks across the globe .MIWD00000PUS fell 1.41 points, or 0.12%, to 1,132.62.
Earlier, the pan-European STOXX 600 finished up 0.77%.
BOND YIELDS FALL
In fixed income, US Treasury yields fell as investors digested the economic data, including solid GDP and in-line US inflation data, a day after the Federal Reserve held interest rates steady.
Peter Cardillo, chief market economist at Spartan Capital Securities, said that while GDP growth was good, "most of that came in the form of growth of spending in AI."
The yield on benchmark US 10-year notes US10YT=RR fell 10.6 basis points to 4.939%.
The 30-year bond US30YT=RR yield  fell 6.03 basis points to 5.3007%.
The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 13.3 basis points to 4.602%.
In currencies, the euro rose against the dollar after the ECB decision, while the greenback eased against other major currencies after the latest economic data.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.23% to 101.88, with the euro EUR= up 0.25% at $1.118.
Against the Japanese yen JPY=, the dollar weakened 0.07% to 157.69.
In cryptocurrencies, bitcoin BTC= fell 2.70% to $79,081.15.
     
OIL DIPS
In energy markets, oil prices fell after the Wall Street Journal reported US Vice President JD Vance had sent a letter to Iranian Security Council chief Mohsen Rezaei in an effort to revive peace negotiations. Also, Qatari mediators presented Iran with a new draft deal to end the war, an official briefed on the negotiations told Reuters, though a senior Iranian official dismissed what had been presented as unacceptable.
US crude CLc1 settled down 0.76%, or 78 cents, at $102.00 a barrel while Brent LCOc1 settled at $114.88 per barrel, down 0.38%, or 44 cents, on the day.
In precious metals, gold fell after US inflation data reinforced expectations of a Federal Reserve interest rate hike later this year, reducing the appeal of the non-yielding metal.
Spot gold XAU= fell 1.16% to $4,019.71 an ounce while spot silver XAG= fell 3.48% to $52.10 an ounce.

(Reporting by Sinéad Carew, Caroline Valetkevitch, Marc Jones; Editing by Aidan Lewis, Tomasz Janowski, Nick Zieminski and Sanjeev Miglani)
((sinead.carew@thomsonreuters.com))