Alphabet Earnings Miss Pressures Market, Nasdaq Drops 1.4%; Tech Stocks Fall Broadly, Marvell Technology Drops Over 13%, Google Falls Over 12%

Marvell Technology (MRVL) fell 13.24% to $218.34.

Marvell Technology is in advanced talks to acquire Lumentum (LITE), with a deal potentially announced as early as next week, Bloomberg reported, citing people familiar with the matter. However, the parties have not finalized an agreement, and specific terms could still change. Lumentum manufactures products such as lasers and optical components used in cloud computing and AI data centers. Its CEO Michael Hurlston previously stated that as AI data center construction progresses, orders for some products are booked through 2029, and existing supply capacity remains unable to keep up with demand.

Google (GOOGL) fell 12.64% to $283.82 following its earnings report.

Google's third-quarter adjusted earnings per share and revenue both missed market expectations, with free cash flow coming in at negative $9.07 billion. The company maintained its full-year capital expenditure forecast of $195 billion to $205 billion.

The performance of mega-cap tech stocks today is shown in the chart below:

The Philadelphia Semiconductor Index fell 1.42% to 11,518.2 points. Among its 30 constituents, 20 declined and 10 advanced.

Microsoft Plans to Issue at Least $25 Billion in Bonds with Maturities Spanning 2 to 40 Years

Microsoft is launching its first high-grade bond offering in more than nine years, seeking to raise at least $25 billion in the U.S. bond market, according to people familiar with the matter. The debt sale is planned in 10 tranches, with maturities ranging from 2 to 40 years. Among them, initial price talk on the tranche maturing in 2066 is set at up to 135 basis points over U.S. Treasuries. Proceeds from the offering are intended for general corporate purposes, including capital expenditures, with Wells Fargo, JPMorgan, and UBS managing the issuance. As AI investments drive up financing needs, Microsoft joins a growing list of big tech companies issuing bonds. The company last issued high-grade bonds in 2017, raising $17 billion across seven tranches.

Anthropic Said to Be SpaceX's Largest Single Customer, Contributing Over One-Third of Quarterly Revenue

Filings submitted last week show that about 34.5% of SpaceX's (SPCX) revenue in the third quarter of 2026 came from a single customer purchasing AI computing power. According to people familiar with the matter, that customer is Anthropic, which has become SpaceX's largest single customer. The U.S. federal government had previously been its largest customer. Anthropic previously signed a computing power contract with SpaceX extending through 2029, with total spending reaching up to $120.5 billion and an expected average monthly outlay of about $3.1 billion starting in December 2026. However, the contract includes cancellation provisions allowing Anthropic to terminate the agreement after January and March 2027, respectively, with 90 days' prior notice. Reports noted that amid tightening financing in the AI computing power leasing market, SpaceX's revenue reliance on Anthropic highlights its customer concentration risk. In addition, another government agency customer accounted for 16.6% of SpaceX's third-quarter revenue.

Eli Lilly's Third-Quarter Revenue Grows 39%, Company Raises Full-Year Outlook Again

Eli Lilly (LLY) reported third-quarter results on October 29, with revenue increasing 39% year-over-year to $24.397 billion, exceeding market expectations of around $22.6 billion. Net profit rose 16% year-over-year to $6.451 billion, while adjusted earnings per share grew 7% year-over-year to $7.48, also surpassing analyst forecasts. Sustained demand growth for Mounjaro and Zepbound was the primary driver of performance. Although realized drug prices in the U.S. market declined, rapid growth in prescription volumes offset pricing pressure. Eli Lilly also raised its full-year revenue outlook once again.

U.S. September PCE Rises to 3.6% YoY as Core Inflation Rebounds

Data released on October 29 showed that the U.S. Personal Consumption Expenditures (PCE) price index rose 3.6% year-over-year in September, up from 3.4% previously and reaching its highest level since May this year, while increasing 0.5% month-over-month. Excluding food and energy prices, the core PCE price index closely watched by the Federal Reserve rose 3.1% year-over-year, up from 3% previously, and gained 0.3% month-over-month. All four figures met market expectations, but both headline and core year-over-year inflation rebounded from the previous month.

ECB Holds Interest Rates Steady, Warns Energy Shocks Could Fuel Inflation and Drag on Growth

The European Central Bank announced on October 29 that it would maintain the deposit facility rate, main refinancing operations rate, and marginal lending facility rate at 2.50%, 2.65%, and 2.90%, respectively, matching market expectations. The Governing Council noted that rising energy prices pose upside risks to inflation and downside risks to economic growth. Although the impact of the energy shock continues to unfold, underlying inflation has remained broadly stable so far, and wages have yet to show a significant reaction. If the energy shock expands or persists longer, its indirect and second-round effects could exacerbate inflation and growth pressures. The ECB reiterated that it will determine its policy stance on a meeting-by-meeting, data-dependent basis without pre-committing to a specific rate path. As principal payments from maturing securities are no longer reinvested, the portfolios under the asset purchase programme (APP) and the pandemic emergency purchase programme (PEPP) will continue to decline at a measured pace.

U.S. Seeks Diplomatic Talks with Iran While Considering Post-Midterm Military Action

According to a report by Semafor, the Trump administration is negotiating an interim peace agreement with Iran, though significant obstacles remain. A U.S. official stated that if diplomatic efforts fail, the U.S. is prepared to resume military action shortly after the midterm elections, though any execution remains at the President's discretion.

Trump confirmed that Vice President Vance had written a letter to Iran in an attempt to restart peace talks, but he downplayed the move, suggesting it was driven primarily by humanitarian concerns. The report also noted that many within the administration remain skeptical about resuming military action, and Trump himself still harbors reservations.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.