All three major US indexes finished in the red overnight led by tech stocks. Meta down 4.1% and Microsoft off 6.1% after both companies raised growing AI costs that could hit their earnings despite both companies beating earnings estimates. The Dow Jones traded in red all session finishing near session lows, down 378 points (-0.90%). Down 437 points at worst. The S&P 500 slid 1.86% wiping out the gauges advance for October halting its streak of monthly gains. The NASDAQ dropped 2.76% and small caps Russell 2000 lost 1.63%. Wall Street’s fear gauge the VIX jumped 13.81% and is primed for more volatility in the next few weeks from corporate earnings, the US election, followed by the FOMC meeting.

In economics, the US PCE price index rose 0.2% in September, aligning with expectations, after a 0.1% rise in August. Core PCE posted its highest monthly gain in five months at 0.3%. Personal spending rose 0.5%, exceeding the 0.4% forecast, demonstrating consumer resilience. Initial jobless claims fell by 12k to 216k for the week, beating the 230k forecast.

ASX SPI Down 52

COMMODITIES

• Gold consolidates after record peak, set for fourth straight monthly rise.
• Copper dips as uncertainty counters upbeat Chinese factory data.
• Oil gains more than $2 after settlement on reports Iran preparing Israel attack.
• Shell's $6bn profit smashes forecasts as LNG offsets weak refining.
• Chevron CEO under pressure to halt share slide as Hess deal stalls.
• US oil output hits monthly record high in August, agency says.

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