US equities ended the day firmly in red territory as investors digested mixed signals from the Federal Reserve's cautious guidance and Big Tech earnings disappointment. The S&P 500 fell 1% (6822) while the Nasdaq declined 1.6% (23581) after strong morning momentum fizzled on Fed Chair Powell's dovish pivot concerns and megacap tech uncertainties. The broader market retreat accelerated during the afternoon session as profit-taking dominated, with the tech-heavy Nasdaq bearing the brunt of selling pressure. Key semiconductor leaders that had gained earlier reversed course, with the market now pricing in slower December rate cut odds.
In European markets, the STOXX 600 edged down 0.1%, with healthcare and banking stocks notably outperforming as ING surged nearly 5% on strong Q3 results and Airbus, ASML jumped 2%. Asian markets displayed mixed momentum with Japan's Nikkei surging over 1000 points, benefiting from yen weakness following the BoJ's dovish stance, while Chinese markets retreated sharply as manufacturing PMI data showed the seventh consecutive month of contraction.
