investingLive European session wrap: Stocks tread cautiously as Fed decision and big tech earnings loom

Global stock markets have been cautious in recent sessions as investors await key events, including a US Federal Reserve decision and major tech earnings announcements. On October 30, tech stocks suffered significant losses, with the Nasdaq experiencing its worst month since March 2025. This downturn was fueled by concerns over the costs associated with artificial intelligence (AI) investments.

The decline in tech stocks was accompanied by a fall in gold prices, partly due to forced liquidations as equity losses mounted. Despite this, some analysts believe the fundamental outlook for gold is increasingly positive. The Bank of Japan (BOJ) governor, Ueda, stated that the central bank will stick to its current interest rate policy. Meanwhile, crude oil prices remain under pressure amid hopes for a US-Iran deal, which could potentially push prices to new highs if negotiations encounter setbacks.

The market reaction was swift, with tech firms experiencing steep losses on October 30. This reversed earlier optimism in the week, which had been prompted by an initial public offering (IPO) filing from AI giant Anthropic. According to Le Monde, the earnings announcements have stoked fears about AI spending, leading to the tumble in tech stocks.

Looking ahead, investors are preparing for a busy week with elections, rate decisions, and jobs data taking center stage. Key earnings announcements from companies like Apple, Palantir, and others are also expected. However, it has not been reported yet how these events will unfold or what their impact will be on the markets.

The current situation has raised several questions, but answers have not been reported yet. What will be the outcome of the US Federal Reserve decision? How will the markets react to the upcoming earnings announcements from major tech companies? These and other developments will likely influence market movements in the days to come.