*Taken from CNBC’s Daily Open, our international markets newsletter.*
Investors were spooked by some Big Tech capital expenditure plans, with all three major indexes falling on Thursday. Meta stock suffered its biggest one-day loss since October 2022, as skepticism over its AI spending plans overshadowed strong quarterly results. Meanwhile, Microsoft shares dropped 3%.
In contrast, Amazon shares jumped more than 13% in extended trading after beating expectations and reporting strong growth in its cloud-computing unit. Netflix also pleased investors by announcing a 10-for-1 stock split, making its shares more accessible to a broader range of investors.
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**Trade Developments: Trump-Xi Summit in Busan**
On the trade front, U.S. President Donald Trump and Chinese President Xi Jinping met in Busan for a summit that resulted in several key agreements: tariffs were trimmed, soybean purchases were promised, and controls on rare earth elements were put on hold for a year. However, some details of the deal remain unclear, raising questions about the long-term impact of this truce between the two economic giants.
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**Market Overview**
As markets continue to assess the Federal Reserve’s rate stance, ongoing tech sector developments, and diplomatic negotiations, investors are left wondering: is this the start of a holiday miracle, or a nightmare before Christmas?
Here’s what you need to know today:
– **Amazon Delivers for Shareholders**
Amazon shares surged more than 13% in extended trading on Thursday after the company posted third-quarter earnings that beat expectations, along with strong growth in its cloud-computing business.
– **AI SPAC Taps Nvidia Advisors**
Nasdaq-listed special purpose acquisition company (SPAC) Dynamix Corporation III raised an upsized $175 million in an initial public offering. The company has engaged advisors from commercial real estate firm Prologis and AI leader Nvidia to help identify potential deals.
– **Netflix Announces 10-for-1 Stock Split**
Netflix declared a 10-for-1 stock split on Thursday. Existing shareholders as of November 10 will receive nine additional shares for each one they hold. The stock will begin trading at the new, lower price starting Monday, November 17. This move aims to make shares more affordable for retail investors.
– **U.S. Markets Dip**
The S&P 500 slipped 0.99%, the Nasdaq Composite fell 1.57%, and the Dow Jones Industrial Average declined by 0.23%. In Europe, the Stoxx 600 ended 0.1% lower, with most major bourses and sectors closing in the red.
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**Sectors to Watch After Trump-Xi Meeting**
According to market professionals, sectors such as gold, defense, and semiconductor stocks are poised for close attention in the wake of the Trump-Xi summit’s agreements. These sectors may offer strategic opportunities as the trade truce influences investor portfolios.
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**The Biggest Takeaways from the Trump-Xi Meeting**
President Donald Trump and President Xi Jinping reached a trade truce during their high-stakes meeting in South Korea on Thursday, de-escalating a dispute over rare earth elements that had threatened to escalate into a full-blown trade war between the world’s two largest economies.
However, this is not a comprehensive deal. Nicholas Burns, former U.S. ambassador to China during the Biden administration, cautioned on CNBC’s “Squawk Box” that “Where we are is an uneasy truce in a long, still simmering trade war.”
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As markets and investors digest these developments, the coming days will reveal whether this temporary peace ushers in stability or further volatility.
*By Spencer Kimball*
https://www.cnbc.com/2025/10/31/cnbc-daily-open-trick-or-treat-for-markets-this-halloween.html