Nerves: Google Stumbles, Investors Bet Big on AI, Microsoft Soars

Here is what you need to know for today (October 26, 2023).

Good Morning 👋

This week has turned out to be a tough one for the stock market. With most of the big tech firms coming out with the earnings for the quarter in the last two days, the investors seem to focus on the “glass half filled.”

It may be the impending government shutdown deadline of November, the geopolitical crises brewing in the Middle East, or the lack of consumer spending (despite some nice improvements in Q3); investors are punishing earnings’ misses more than they are rewarding companies for target beats.

In fact, a measure of fear in the market called the CBOE Volatility Index, went up by 8.1% on Wednesday, showing that investors are feeling a bit more nervous than usual.

On Wednesday, the Nasdaq fell 2.4%, its worst one-day decline since Feb. 21. The tech-heavy index closed more than 10% below a recent high, hit on July 19. It is about 20% below its record close of from Nov. 19, 2021.

Let’s dig deeper.