markets PM market analysis — 2026-10-29
US equities turned more selective this session as investors reassessed the durability of the AI-led rally. Weakness followed disappointing results from large technology companies, with Trading Economics tying the move to renewed doubt about whether heavy AI investment is converting into lasting growth.
The pullback was not uniform. HDFC Sky notes the Federal Reserve held policy steady while chip-sector and energy names offered some offset, keeping broader indices from a sharper decline. Au79 Macro Research points to continued rotation across sectors, with flows shifting unevenly between technology, financials and energy rather than exiting growth names outright.
Yahoo Finance adds that firmer inflation readings and rising bond yields are compounding the pressure on technology valuations, a dynamic that extended into European trading as well. Taken together, the session reads as a market distinguishing between AI-linked earnings quality and broader macro support, rather than a wholesale reversal out of technology.
Worth Tracking
- Large technology earningsFurther reports will show whether AI spending is translating into durable growth, per Trading Economics.
- Interest-rate and inflation signalsRenewed yield pressure could weigh further on long-duration technology valuations, per Yahoo Finance.
- Sector rotation breadthWatch whether flows keep favouring financials and energy or return to technology, per Au79 Macro Research.
This analysis was generated automatically and is for information only — not financial advice.