Wall Street ended Wednesday with a gain, but the real action came after the closing bell. Q3 earnings from two of the biggest names in tech sent them in opposite directions: Alphabet dropped more than 7% in after-hours trading, while Microsoft jumped over 4%. Meanwhile, a chip rally pushed semiconductors to a fourth straight daily gain. Here is the scorecard.
Q3 Earnings Scorecard: Alphabet Falls, Microsoft Rises
As reported by the Honolulu Star-Advertiser, citing Reuters, Alphabet fell more than 7% in extended trading after its quarterly report. Microsoft rose over 4% in the same session after its own results. The report did not detail the underlying figures, so check each company’s investor relations page for the full numbers.
The split reaction underlines how demanding the market has become. Ryan Detrick of Carson Group said investors are asking one big question: “are AI expenditures continuing?” Strong or weak results from the giants of cloud and AI are being read as a verdict on that spending cycle.
How the Major Indexes Closed
Ahead of those reports, stocks finished higher on Oct. 28. The Dow Jones Industrial Average rose 97.53 points, or 0.19%, to 52,475.10. The S&P 500 added 21.37 points, or 0.28%, to 7,743.97. The Nasdaq Composite gained 72.04 points, or 0.27%, to 26,549.85.
Breadth was modestly positive. On the Nasdaq, about 2,849 stocks rose and 1,926 fell, a ratio of roughly 1.48 to 1. On the NYSE, advancers beat decliners by about 1.05 to 1, with 110 new highs and 214 new lows. Volume reached 16.67 billion shares, below the 17.10 billion average over the last 20 sessions.
The Bigger Earnings Picture
The season is running strong. According to LSEG data cited in the report, about 200 S&P 500 companies have reported third-quarter results so far, and 84% beat consensus estimates. Analysts now expect third-quarter S&P 500 earnings to grow 31.8% from a year earlier, up from 30.6% as of Oct. 1.
That kind of growth helps explain why stocks keep grinding higher even with the Fed leaning toward more hikes. Profits are doing much of the heavy lifting.
Chip Stocks Lead the Charge
Semiconductors were the standouts. Micron rose 5.9% after rival SK Hynix reported a more than sevenfold jump in quarterly profit. U.S.-listed shares of SK Hynix gained 13.3%. The Philadelphia SE Semiconductor index climbed 1.8%, its fourth straight daily gain.
Data-center infrastructure also drew buyers. Vertiv surged 16.5% after topping quarterly expectations and raising its full-year profit and revenue forecasts. Taken together, these moves suggest the AI hardware trade is still alive.
Today’s Earnings Losers
Not everyone celebrated. Robinhood slid 3.3% after softness in crypto trading pushed its third-quarter profit below analyst expectations. Boston Scientific fell 5.8% after trimming its annual profit forecast. Both moves are a reminder that even in a strong season, guidance cuts and misses get punished quickly.
What to Watch Thursday
Two big data releases are due. The PCE report, the Fed’s preferred inflation gauge, and the advance estimate of third-quarter GDP could both shift expectations for rates. Traders already put an 85.0% chance on a quarter-point Fed hike in December, up from 78.3% a day earlier, per CME FedWatch. A hotter inflation reading could push that higher.
Energy is another variable. U.S. crude rose after Iran-backed Houthis attacked a Saudi Arabian refinery, and oil has stayed above $100 a barrel since the Iran war began, adding to inflation pressure. For the Fed’s side of the story, read our breakdown of the Fed decision and our earlier Q3 earnings winners and losers.
What Investors Can Take Away
First, results matter less than expectations. Alphabet and Microsoft are both giants, yet the market reacted in opposite ways. Second, the AI trade is broadening from software to chips and power equipment. Third, macro data can quickly overshadow earnings. Diversification and a long time horizon remain the best defenses against single-day swings. This article is for general information only and is not financial advice; consider speaking with a licensed advisor before making changes to your portfolio. You can also review company filings directly on the SEC’s EDGAR database.
