A tech earnings shock dominated the week. Disappointing results and spending guidance from Alphabet, Amazon and Intel triggered a sharp selloff in AI-linked stocks, while healthcare stood out as the defensive play, led by Eli Lilly’s strong Q3. The S&P 500 still gained 1.27% on rotation into healthcare and energy, and the Euro Stoxx 50 rose 1.27%.
The big story was Brazil: Lula’s surprise fourth-term victory sent the Ibovespa down 17.5% and the dollar up more than 12% against the real, with contagion hitting Argentine bonds. Elsewhere, investors moved from tech stocks into government bonds, and yields fell across developed markets. The US 10Y eased to 4.92%. The BoJ held rates but signalled inflation has reached its 2% target for the first time.
Next week: Brazil’s Selic decision, Banxico, and Chile’s CPI.