Samsung's shares fell 4% in South Korea, while Alphabet lost 10% in overnight trading. Samsung's chipmaking division reported lower operating profit than expected, while Alphabet's search ad revenue came in below forecasts, raising concerns about AI overlays impacting its core business.
The Fed held interest rates steady but indicated future hikes are likely. SoFi's Liz Thomas suggested a rate hike should have occurred, citing persistent inflation due to high oil prices from the ongoing war in Iran. Fed chair Kevin Warsh also announced plans to hold fewer rate-setting meetings next year, a move criticized by UBS's Paul Donovan as lacking flexibility during economic turmoil.
Despite the tech sector's struggles, Microsoft beat revenue expectations and lowered its capital expenditure guidance, causing its stock to rise 3.39%. Global markets showed mixed performance, with the Nasdaq futures down over 1%, S&P 500 futures down 0.3%, and European indices slightly higher. In Asia, South Korea's KOSPI fell 1.24%, while Japan's Nikkei 225 and India's Nifty 50 rose.
Brent crude fell to $114 per barrel, and Bitcoin was trading at $80,029. Goldman Sachs' Vickie Chang noted that equities typically recover quickly after initial struggles following rate hikes, troughing within two months and recovering within four.