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Last Night's US Stock Market Plunge: Spectator or Participant?

2024-11-01


At this historic juncture, the world's attention is focused on the US presidential election, which has undoubtedly become a pivotal event affecting the global landscape.

 Although the election results are yet to be announced, American society has already plunged into an unprecedented state of tension. 

The opposition between supporters of the two major camps is escalating, with debates and conflicts continuously unfolding in both 

the virtual cyberspace and real-life streets, and incidents of violence occurring from time to time.


Recently, stocks related to Trump, DJT, have experienced a significant drop in the stock market, with a decline close to 40%. 

The main reason for this change is the latest public opinion polls showing that the Democratic candidate Harris has a slight lead in Pennsylvania, 

while the Republican candidate Trump's support in other key swing states, such as Arizona, Georgia, and North Carolina, is neck and neck with his opponents.


Commentary on Amazon and Apple's Performance After Earnings Reports


Amazon's stock price soared by more than 6% in after-hours trading, while Apple's stock price fell by more than 1%.


Amazon's earnings report showed that its quarterly revenue reached $158.88 billion, a year-over-year increase of 11%, 

exceeding expectations; earnings per share were $1.43, also higher than expected. Although the revenue from the cloud business AWS, $27.4 billion,

 was slightly below expectations, and the advertising business $14.3 billion met expectations, the key factor for Amazon's stock price increase was 

the improvement in its operating margin. The report showed that the operating margin reached 11%, higher than the expected 9.3% and last year's 7.8%, 

setting a historical record. This increase in profit margin made Amazon's operating profit exceed expectations by 18%, positively affecting the stock price.


Apple's earnings report showed that the company's quarterly revenue was $94.93 billion, a year-over-year increase of 6%, exceeding expectations. 

Earnings per share were $1.64, also higher than expected. iPhone revenue reached $46.22 billion, a year-over-year increase of 6%, setting the 

best record for the third quarter in the company's history. Service revenue was $24.97 billion, slightly below expectations. CEO Cook mentioned 

that iPhone 15 sales exceeded those of the previous year's 14, and 16 also exceeded those of the previous year's 15. The adoption rate of iOS 18.1 is double that of 17.1,

 showing early signs of a replacement wave. Despite this, Apple's stock price fell after the earnings report, reflecting the market's digestion of expectations for 

Apple's smart products and a conservative outlook on future revenue growth.