- In the credit derivatives market, the cost of protecting Broadcom Inc.’s debt against default for five years rose by about 10 basis points to 175.4 basis points a year, the highest closing level on record, according to ICE Data Services. The gauge rises as investor worries grow.
- A similar gauge for SpaceX rose about 20 basis points to 266.5 basis points, its highest closing level since it started trading earlier this year. Meanwhile, CDS tied to Alphabet rose by about 5.1 basis points to about 84 basis points, the biggest increase in basis point terms since July.
- Investors are looking to hedge their credit exposure after the Google and YouTube parent posted weaker-than-expected revenue and earnings per share for the third quarter. That includes ad sales, critical for financing Alphabet’s massive AI investments.
- While equity investors could see huge gains if AI investments pay off, debtholders bear the pain if things unravel, said Gavan Nolan, fixed-income-pricing executive director at S&P Global Market Intelligence. Bond investors are laser-focused on capital spending and when AI revenue will be free cash flow positive, he added. “In some way credit is telling a bit of a different story than equities when it comes to the tech sector,” Nolan said in an interview.
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Nasdaq 100 Falls 2.5% as Earnings Deepen Tech Rout: Markets Wrap - https://www.bloomberg.com/news/articles/2026-10-29/stock-mar... - October 29, 2026 at 5:07 PM CDT, Updated on October 30, 2026 at 9:50 AM CDT
- Another batch of disappointing tech results intensified the industry rout, with traders questioning the payoff from artificial-intelligence investments. The Nasdaq 100 fell 2.5%. Intel Corp. sank 27% as its outlook missed estimates. Amazon.com Inc. dropped 2% amid greater capital spending. The S&P 500 hovered near its 100-day moving average, a key technical level.
- The core businesses of America’s technology giants — the advertising, consumer and retail machines propping up a collective $750 billion in AI spending this year — are starting to show signs of slowing. In some cases, they’re being cannibalized by the very technology the firms are betting the house on.
- That has sharpened scrutiny of both the durability of AI demand and whether the huge sums being poured into the technology will generate sufficient returns. The Nasdaq 100 has already wiped out more than $1.2 trillion in market capitalization in October.