NASDAQ faces heavy selling pressure. Investors turn to Switzerland as a safe haven

By JustMarkets 

The US equity markets closed sharply lower on Thursday, weighed down by a broad-based sell-off in the technology sector. By the end of the session, the Dow Jones (US30) edged up 0.02%, while the S&P 500 (US500) fell 1.21%. The tech-heavy NASDAQ (US100) underperformed significantly, declining 2.60%.

The primary drivers behind the downturn were mixed corporate earnings results and growing investor skepticism regarding the profitability of massive AI-related capital expenditures (CAPEX), triggering an accelerated rotation out of semiconductor stocks and mega-cap technology names. The epicenter of the sell-off was Meta Platforms, whose shares plunged 7.0%. Although the company exceeded expectations on both revenue and net income, markets reacted negatively to management’s decision to further raise capital spending guidance, partially financed through debt markets. Meta’s announcement triggered broader weakness among hyperscale technology companies ahead of their earnings releases next week. Amazon lost 4.6%, Alphabet declined 3.2%, and Microsoft fell by 2.2%. The semiconductor sector experienced one of its sharpest sell-offs in recent months. The trigger came from a disappointing outlook issued by chip-equipment manufacturer Lam Research, whose shares plummeted 11.8%. The weakness quickly spread throughout the industry, with AMD falling 8.1%, Intel dropping 8.0%, Micron Technology losing 6.3%, and sector leader Nvidia declining 4.4%.

In Europe, stock markets also moved lower on Thursday. Germany’s DAX (DE40) fell 1.07%, France’s CAC 40 (FR40) declined 1.39%, Spain’s IBEX 35 (ES35) lost 2.12%, and the UK’s FTSE 100 (UK100) slipped 0.26%.

The decline in yields on 10-year Swiss government bonds to a one-month low of 0.5% highlights Switzerland’s continued status as Europe’s premier safe-haven destination. Amid a deepening fiscal crisis in France and widening sovereign bond spreads across the Eurozone, investors have increasingly shifted capital into Swiss government debt. At the same time, the Swiss National Bank’s policy stance remains sharply differentiated from those of other G7 central banks. The SNB has maintained its benchmark interest rate at 0%, while Chairman Martin Schlegel has reiterated that immediate tightening is unnecessary as inflation remains stable and comfortably within the central bank’s target range.

WTI crude oil prices surged above $99 per barrel, reflecting a rapid increase in the geopolitical risk premium. Markets reacted to what is perceived as a growing direct threat to critical infrastructure across the Persian Gulf region. Until now, physical oil exports have remained relatively stable thanks to strong profit margins and alternative shipping routes. However, the reported evacuation of Saudi Aramco’s headquarters in Dhahran, the attack on Dammam International Airport, and the withdrawal of US diplomatic personnel from Saudi Arabia have heightened concerns that risks are becoming systemic. Furthermore, the possibility of renewed strikes against Iranian energy infrastructure following the US midterm elections has raised concerns over potential disruptions affecting millions of barrels per day of global oil supply.

The US natural gas (XNG) prices rebounded to $2.81 per MMBtu after reaching a two-month low, supported by a bullish EIA inventory report. Weekly gas storage injections totaled 77 billion cubic feet (bcf), below expectations of 79 bcf and beneath the five-year average of 87 bcf. As a result, total storage inventories stand at 3.644 trillion cubic feet. While still approximately 1% above the five-year average, inventories are now 4% below year-ago levels, contributing to a gradual tightening of the supply surplus in the natural gas market.

Asian equity markets came under broad pressure. Japan’s Nikkei 225 (JP225) dropped 2.65%, China’s FTSE China 50 declined 1.89%, Hong Kong’s Hang Seng (HK50) plunged 3.03%, while Australia’s ASX 200 (AU200) lost 0.43%.

The sharp decline in Hong Kong equities was driven by a combination of domestic selling pressure and an unfavorable external environment. Market rumors regarding potential tax investigations involving mainland Chinese entrepreneurs triggered a rush to reduce risk exposure. As a result, major technology companies including Alibaba, JD.com, Tencent, and Meituan faced heavy profit-taking and renewed concerns over future regulatory scrutiny.
Meanwhile, Singapore’s inflation data underscored the effectiveness of the Monetary Authority of Singapore’s exchange-rate-based policy framework. Headline inflation slowed to 2.2% year-over-year, while MAS Core Inflation eased to 2.0%. The MAS decision in October to leave all parameters of the S$NEER policy band unchanged, including its slope, width, and midpoint, confirms the central bank’s strategy of gradually mitigating external inflationary pressures through the continued strength of the Singapore dollar.

S&P 500 (US500) 7,663.43 -93.74 (-1.21%)

Dow Jones (US30) 52,867.98 +11.89 (+0.02%)

DAX (DE40) 25,371.75 -273.29 (-1.07%)

FTSE 100 (UK100) 10,725.03 -27.85 (-0.26%)

USD Index 101.65 -0.13 (-0.13%)

News feed for: 2026.10.23

• Australia Manufacturing PMI (m/m) at 01:00 (GMT+3) – AUD (MED)
• Australia Services PMI (m/m) at 01:00 (GMT+3) – AUD (MED)
• Japan National Core CPI (m/m) at 02:30 (GMT+3) – JPY (HIGH)
• Japan Manufacturing PMI (m/m) at 03:30 (GMT+3) – JPY (MED)
• Japan Services PMI (m/m) at 03:30 (GMT+3) – JPY (MED)
• UK Retail Sales (m/m) at 09:00 (GMT+3) – GBP (MED)
• German Manufacturing PMI (m/m) at 10:30 (GMT+3) – EUR (MED)
• German Services PMI (m/m) at 10:30 (GMT+3) – EUR (MED)
• Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3) – EUR (MED)
• Eurozone Services PMI (m/m) at 11:00 (GMT+3) – EUR (MED)
• UK Manufacturing PMI (m/m) at 11:30 (GMT+3) – GBP (MED)
• UK Services PMI (m/m) at 11:30 (GMT+3) – GBP (MED)
• Canada Retail Sales (m/m) at 15:30 (GMT+3) – CAD (MED)
• US Manufacturing PMI (m/m) at 16:45 (GMT+3) – USD (MED)
• US Services PMI (m/m) at 16:45 (GMT+3) – USD (MED)
• US New Home Sales (m/m) at 17:00 (GMT+3) – USD (MED)
• US Michigan Inflation Expectations (m/m) at 17:00 (GMT+3) – USD (MED)

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.