Tue 4 Nov: After the Bell🔒

Your 5’ evening market wrap 📄📈 Risk-off: Stocks fall + cryptos plummet

See the ‘Market Data’ post for tables & charts.

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Good evening,

Stocks tumbled sharply on Tuesday, with the Nasdaq Composite falling 2% and the VIX rising to 18.9%, its highest level in two weeks, as investors grew increasingly cautious about stretched tech valuations. Despite modest moves in core bonds, the 2-year Treasury Note yield fell just 2bp, risk sentiment deteriorated, driven by warnings from Goldman Sachs and Morgan Stanley executives of a potential 10–15% equity correction.

Palantir shares fell 8% even after solid quarterly results yesterday, as analysts questioned its high P/E ratio, reflecting concerns about whether the tech-led rally can sustain its momentum. Mega-caps Nvidia and Tesla fell 4% and 5%.

The broader market caution was reinforced by a stronger dollar, with the DXY index closing above 100 for the first time in over three months, while £ slid nearly 1% to $1.3018, its weakest level since mid-April, following comments from Chancellor Rachel Reeves that tax increases could not be ruled out in the upcoming Budget.

The crypto market also sold off, with Bitcoin dropping more than 5% to just above $100k, trading below that level for the first time since late June, reflecting a widespread shift toward more defensive positions.

Earnings: Among today’s earnings reports, the movers were Uber and Shopify, both falling over 5% as investors reacted to weaker-than-expected profitability and margin pressures. Uber posted $13.4bn in Q3 revenue, beating estimates, but its operating profit and Q4 guidance came in slightly below expectations. Shopify delivered strong revenue growth of ~32% YoY, yet higher spending on AI and payments weighed on operating income, fuelling the sell-off despite top-line strength.