Gift Nifty signals gains as US tech stocks face selloff (2 Nov)

US tech stocks lead $1 trillion market loss

Technology stocks led a market loss of more than $1 trillion on Friday. The Nasdaq Composite fell 2.86% to 25,437.00, while the Dow Jones Industrial Average dropped 1.09% to 51,770.31. The S&P 500 declined 1.82% to 7,580.07.

Intel shares dropped 28.58%, AMD fell 10.88%, and Micron Technology slipped 5.30%. Broadcom plunged 5.48%, Nvidia declined 4.22%, Microsoft fell 1.55%, and Alphabet fell 1.45%.

Market participants are monitoring Q2 results, US-Iran war developments, crude oil prices, US midterm elections, foreign fund flows, and macroeconomic data this week.

Investors hedge against AI stock volatility

This rising demand for these financial tools aims to protect portfolios against significant volatility in AI stocks.

The cost of insuring against debt defaults for companies like Amazon, Alphabet, Microsoft, Meta, and Oracle rose to its highest level since 2021 over the past month.

Oil prices remain above $100 a barrel

Oil prices remained above $100 a barrel despite geopolitical risks.

US West Texas Intermediate crude fell 1.76% to $102.28 a barrel.

Analyst ratings for Datadog, Nvidia, and SpaceX

Bank of America analyst Koji Ikeda maintained a buy rating on Datadog and raised the price target to $335 from $305. Ikeda, who is ranked 673rd out of more than 12,500 analysts with a 55% success rate, expects Datadog’s revenue growth in Q3 FY26 to be 28.7%, slightly below the Street consensus of 29.1%. Datadog is scheduled to announce its financial results for the third quarter on November 4, 2026.

Moore is ranked 142nd out of more than 12,500 analysts, with a 59% success rate and an average return of 23.4%.

SpaceX reported Q3 2026 revenue of $7.56 billion, a significant increase from $813 million in the same quarter of the previous year. The company's revenue grew 161% year-over-year, while its Connectivity segment generated $2.37 billion in operating income with 13.6 million subscribers. SpaceX's AI revenue grew 195.2% sequentially in Q3 2026, and the company is targeting the addition of 10 gigawatts of incremental capacity during 2027. Needham analyst Ryan Koontz, who holds a 42% success rate, reiterated a buy rating on SpaceX stock with a price target of $250.

Home Depot reported second-quarter earnings of $4.92 per share on sales of $47.861 billion, exceeding analyst estimates of $4.73 per share and $47.271 billion in sales. Shares of Fabrinet dropped approximately 19% following fourth-quarter results and first-quarter GAAP EPS guidance that fell below market estimates. Lucas GC Ltd fell 79% to $0.30, Synergy CHC Corp declined 31% to $0.11, and Ucloudlink Group Inc dropped 28% to $0.49 after missing second-quarter financial results and cutting FY26 sales guidance.

Dan Lefkovitz, a strategist for Morningstar Indexes, said, "It seems like there is such a thing as a post-election pop".

Cryptocurrency stocks to watch

Galaxy Digital Holdings Ltd. operates through six segments, including trading, investment management, and mining, and analysts currently assign it a "Moderate Buy" rating. The company provides financial services across banking, investment management, and trading.

HIVE Digital Technologies, formerly known as HIVE Blockchain Technologies, mines Bitcoin and Ethereum Classic in Canada, Sweden, and Iceland while operating data centers.

Ionic Digital was established in January 2024 to acquire the cryptocurrency mining assets of Celsius Mining and focuses on monetizing its portfolio of powered digital infrastructure assets. Soluna Holdings operates through cryptocurrency mining and data center hosting, including the development of modular data centers for mining. These firms primarily focus on cryptocurrency mining and digital infrastructure.

Global market performance and economic indicators

The S&P 500 dropped 0.69% to 7,691.76, with a separate report noting a 0.55% decline to 7,702.64. The Dow Jones Industrial Average closed lower by approximately 116 points to 53,343.40, while another source stated a 0.08% decline to 53,416.87.

U.S. industrial production rose 0.2% in July, missing the 0.3% market estimate. Pending home sales declined 2.3% month-over-month.

In global markets, the STOXX 600 fell 0.3%, the DAX declined 0.3%, and the CAC 40 dropped 0.4%. The IBEX 35 gained 0.4%, and the FTSE 100 rose 0.3%. Asian markets closed mixed, with Japan’s Nikkei 225 dipping 2.54%, Hong Kong’s Hang Seng gaining 0.07%, and China’s Shanghai Composite rising 0.19%. India’s BSE Sensex fell 0.63%. Earlier on Monday, Japan's Nikkei 225 declined 0.44% and the Topix fell 0.60%, while South Korea's Kospi rose 0.16% and the Kosdaq eased 0.02%.

Commodity prices saw oil rise 0.8% to $85.18, while gold fell 0.5% to $4,451.30. Silver dropped 1.5% to $65.250, and copper declined 0.9% to $6.5585.

Western Digital shares fell 7% and SanDisk Corp. shares declined 9%, leading losses on the Nasdaq. Profusa Inc shares rose 193% to $13.26, Xos Inc surged 106% to $4.32, and Wetour Robotics Ltd gained 73% to $42.62.