Megacaps Drag Global Markets Lower
October 30, 2025 – Global shares declined sharply, marking their largest daily drop in three weeks, as megacap tech stocks Microsoft and Meta Platforms experienced significant losses.
On Wall Street, Meta plunged nearly 12% after releasing quarterly results Wednesday, coupled with reports of a planned $25 billion bond sale. Microsoft shares fell 2.5% following its earnings report. In contrast, Alphabet (Google) rose 5%, benefiting from strong AI-driven revenue growth.
The S&P 500 fell 0.49% to 6,856.76, while the Nasdaq Composite dropped 1.02% to 23,713.22. The Dow Jones Industrial Average gained slightly, rising 0.46% to 47,853.26, offsetting some tech losses.
“Markets’ immediate reaction has been to see the FOMC meeting as hawkish – with simultaneous selling of bonds, gold, and equities,” said Matt King, founder of Satori Insights.
Fed Signals Reduce Odds of Another Rate Cut
Investors digested comments from Federal Reserve Chair Jerome Powell, who cast doubt on the likelihood of an additional 25-basis-point rate cut at the December meeting, following the recent reduction.
Fed funds futures now indicate a 72.8% probability of a December cut, down from more than 90% a week ago. Benchmark U.S. Treasury yields rose, with 10-year yields climbing 2.7 basis points to 4.085% and 2-year yields rising 2.8 basis points to 3.614%, reflecting shifts in interest rate expectations.
Yen Falls as BOJ Holds Rates Steady
The Japanese yen weakened sharply against the dollar, falling 0.94% to 154.13 after the Bank of Japan (BOJ) kept rates unchanged. Investors had anticipated a more hawkish stance from Governor Kazuo Ueda, despite his signaling that a rate hike could occur as soon as December.
The dollar index also rose 0.28% to 99.42, while the euro slipped 0.15% to $1.1582, reflecting market reactions to global central bank policy signals.
ECB Holds Rates Amid Low Inflation
In Europe, the European Central Bank (ECB) maintained rates at 2% for the third consecutive meeting, providing no indication of near-term changes. European equities also traded lower, with the pan-European STOXX 600 down 0.38%, as investors balanced steady growth with ongoing trade tensions.
“The ECB’s steady policy approach looks set to remain in place for months,” said Karl Schamotta, chief market strategist at Corpay.
U.S.–China Trade Developments
Markets were also monitoring news that President Donald Trump and President Xi Jinping agreed to a deal trimming tariffs on Chinese goods. The deal includes measures for Beijing to crack down on illicit fentanyl, resume U.S. soybean purchases, and maintain rare earth exports, which contributed to cautious optimism in global trade-sensitive sectors.
Commodities Market Response
Crude oil prices fell modestly, with U.S. crude down 0.56% to $60.14 per barrel and Brent crude down 0.59% to $64.54. Analysts attribute the declines to investor uncertainty over global growth and trade developments.
Outlook: Volatility Expected to Continue
With megacap earnings, central bank policy, and global trade developments all influencing markets, analysts expect heightened volatility in the coming weeks. Traders will be watching upcoming earnings from Apple and Amazon, as well as any signals from central banks on future rate moves.
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