Weekly Summary, 31 Oct 2024: Big Tech Earnings, Oil Prices, and Bitcoin Trends

This week was rich with developments, from earnings reports of major tech companies to shifts in oil prices and a Bitcoin rally ahead of the US election. Here’s what moved the markets and what investors should consider going forward.

Tech Earnings Show Mixed Performance

Meta, Amazon, and Alphabet revealed mixed results in their Q3 earnings. Meta’s AI initiatives brought strong growth, Amazon saw muted gains in its AWS division, and Alphabet’s Google Cloud surged, aiding its revenue. As these tech giants look toward 2024, investors await clear spending priorities amidst market uncertainty. For the full breakdown, see Meta, Amazon, Alphabet Q3 2024 earnings report.

Crude Oil Price Falls Amid Middle East Calm

US crude oil prices saw a dramatic drop this week, the steepest in years, due to eased Middle East tensions and production surges. West Texas Intermediate crude fell over 6% to approximately $67 per barrel, driven by low demand, especially from China’s slowing economy. For a detailed analysis, check out US crude oil's significant price dip.

Bitcoin Nears Record High Pre-Election

Bitcoin surged close to its all-time high at $70,000 this week, supported by rising confidence in crypto assets ahead of the US election. Market analysts cite historical Q4 bullish trends and strong inflows, including Bitcoin spot ETFs, as factors sustaining the cryptocurrency’s momentum. Read more about Bitcoin’s trajectory in Bitcoin's surge ahead of the US election.

Alphabet’s Q3 Growth Lifts Nasdaq

Alphabet's earnings surpassed expectations, led by Google Services and Google Cloud, lifting Nasdaq to a record 18,712. Election-related ad spending bolstered ad revenue across the platform, reflecting investor optimism about the tech sector’s resilience. Explore the full story in Alphabet’s earnings boost Nasdaq.

AMD and Microsoft Earnings Amidst SMCI Controversy

AMD and Microsoft released notable Q3 results. AMD’s performance in data centre AI chips was strong, but its guidance fell short, causing a 10% stock dip. Microsoft, however, exceeded expectations with substantial growth in cloud services. Meanwhile, SMCI’s shares dropped over 32% following an auditor resignation due to management concerns. Read about AMD, Microsoft results and SMCI's controversy.

Conclusion

This week’s events reflect Big Tech's continued influence on market trends, even as global dynamics in oil and crypto present new variables. Investors should stay alert to shifts in corporate priorities, commodity markets, and macroeconomic factors ahead of the US election.

TL;DR FAQs

How did tech companies perform in Q3 2024?

Meta, Amazon, and Alphabet had mixed results, with strong AI contributions from Meta and Alphabet. AWS growth for Amazon was slower than anticipated.

What led to the significant crude oil price drop?

The sharp decline in oil prices was primarily due to eased Middle East tensions, oversupply, and weaker demand from key economies, notably China.

Why is Bitcoin close to record highs?

Bitcoin neared record highs driven by pre-election speculation, ETF inflows, and historically strong Q4 trends, contributing to a bullish sentiment.

What controversy impacted SMCI?

SMCI faced a major share drop after auditor Ernst & Young resigned, citing concerns about corporate management and audit standards.