New York stock market opens lower due to poor performance of Amazon and Intel

(Seoul = Yonhap News) Reporter Jeong-won Yoon, Yonhap Infomax = The three major stock indices of the New York Stock Exchange started lower as the poor performance of Amazon and Intel triggered a weakening of technology stocks.

As of 9:54 a.m. on the 30th (local time), the Dow Jones Industrial Average on the New York Stock Exchange recorded 52,147.77, down 197.79 points (0.37%) from the previous day. The Standard & Poor's (S&P) 500 index was down 91.66 points (1.19%) from the previous day to 7,628.73, and the Nasdaq composite index was down 564.32 points (2.16%) from the previous day to 25,620.40.

As the earnings announcements of Amazon and Intel, which were announced after the market closed the previous day, fell short of market expectations, investor sentiment, especially around technology stocks, cooled quickly on this day.

Amazon's third quarter earnings per share (EPS) and sales were recorded at $1.89 and $201.94 billion. This was below market expectations of $1.96 and $202.31 billion.

In addition, Amazon's cumulative free cash flow (FCF) for the past 12 months was negative (-) $42.4 billion.

Intel's third quarter performance exceeded market expectations, but its sales guidance disappointed.

Intel's third quarter EPS and sales were $0.52 and $16.51 billion, exceeding market expectations of $0.40 and $16 billion, respectively.

However, the adjusted EPS and sales guidance for the fourth quarter were presented at $0.25 and $15 to $16 billion, respectively, falling below market expectations of $0.43 and $17.1 billion.

Amazon and Intel stock prices fell 2.23% and 30.05%, respectively.

The overall semiconductor market was also under pressure. Nvidia fell 3.08% and AMD fell 9.58%.

Server manufacturer Dell also fell 8.63%.

Art Hogan, chief market strategist at B. Riley Wells, pointed out, “The question is what is reflected in the stock price and how much investors are expecting.”

"It didn't take much for Alphabet, Amazon and Intel to trigger major disappointment, and the resulting share price decline could be quite significant," he said. "However, I don't see this as a market-wide rebalancing, but rather a movement of money away from very popular technology stocks and into safer investments."

Looking at each industry, basic consumer goods and energy showed strength, while technology and communications showed weakness.

Social media platform Reddit's stock price plunged 25.19% as not only did its sales guidance for the fourth quarter fall short of market expectations, but the number of daily net active visitors in the fourth quarter was also likely to decline by around 10%.

Cryptocurrency-related stocks showed weakness as it was estimated that hacking damage worth about $6.3 billion occurred at Binance, the world's largest virtual currency exchange. Coinbase and Robinhood fell 11.58% and 8.27%, respectively.

ExxonMobil and Chevron's stock prices rose as their third-quarter performance exceeded expectations due to rising diesel prices. ExxonMobil rose 2.60% and Chevron rose 1.73%.

European stock markets showed mixed results.

The Euro STOXX 50 index is trading at 6,148.10, down 0.95% from the previous day. Britain's FTSE 100 index and France's CAC 40 index rose 0.19% and 0.19%, respectively, and Germany's DAX index fell 0.61%.

International oil prices rose.

At the same time, the price of West Texas Intermediate (WTI) crude oil for December 2026 delivery, which is a nearby contract, is recording $103.75 per barrel, up 1.72% from the previous price.