ACFMarketWrap: The AI trade is cracking again as disappointing tech earnings trigger a global sell-off, but defence and defensive stocks are fighting back - Wall Street tumbled Thursday as investors questioned whether the AI spending boom can justify lofty valuations, accelerating the rotation out of semiconductors. The S&P 500 ▼1.3%, Nasdaq ▼2.2% and Dow ▼ ~110 points, with technology, communication services and consumer discretionary under heavy pressure while consumer staples proved more resilient. Renewed geopolitical tensions and supply concerns also pushed oil prices higher, adding another inflation risk. $META sold off sharply despite beating earnings and revenue expectations, while $TSLA came under pressure after scaling back spending plans, with quarterly capital investment falling short of forecasts. $LRCX ▼ >10% on disappointing guidance, $IBM ▼1.3% and $HON ▼ 0.1% despite raising its full-year outlook. Defence offered a rare bright spot as $LMT +6.6% after beating earnings and revenue estimates. Mag 7 mostly lower: $GOOG -2.37%, $NVDA -3.96%, $MSFT -1.41%, $TSLA -1.6%, $AMZN -4.02%, $META -7.19%, $AAPL +0.46%. Europe suffered an even broader retreat, with the Euro STOXX 50 ▼ ~2% to a four-month low and STOXX 600 ▼ 1% to a one-week low. Italy ▼ over 2.5%, Spain ▼~2%, and Germany and France ▼more than 1%, while the UK proved relatively resilient. A sharp metals sell-off hammered basic resources, with silver ▼~ 5%, copper over 2.5% and gold more than 2%, dragging the sector down 3.5%+. Banks ▼>3%, industrials ~2.5% and technology 2%, while energy and travel also weakened. Healthcare and food, beverage and tobacco stocks bucked the trend with gains of ~2%. Corporate results added to the volatility: $RMS ▼5% after reporting flat sales, while $HO and base:0x23fcefda11d1d785325beda44765472252b37b1d weakened despite improved outlook and profit developments. $SAP + >3.5% after upgrading full-year guidance, $NESN +2.3% on strong quarterly sales and $ROG held near flat despite better-than-expected revenue. London outperformed its European peers, with the FTSE 100 ▼ less than 0.5% as gains in healthcare and consumer defensives cushioned steep losses in banks and miners. $ANTO.L ▼ over 6%, $FRES.L and $AAL.L ▼ ~5.5%, and $EDV.L ▼ more than 4% as metals prices retreated. $BARC.L ▼over 2% after announcing plans to eliminate 5,000 jobs through AI-driven efficiencies, while weaker 3Q26 bond-trading performance added pressure. UK banks also faced concerns over potential tax increases in next week's Budget, with $HSBA.L and $LLOY.L ▼ over 2%, $NWG.L ▼ more than 1% and $STAN.L ▼over 4%. $SBRY.L ▼ more than 2% after disappointing 1H26 like-for-like sales growth. Defensive names provided a lifeline, with $AZN.L and $GSK.L both +2.6%, $ULVR.L +3% and $BATS.L + >2%. Next in focus: UK September Retail Sales m/m & Germany Flash Manufacturing PMI for October. ACFview @WizardBattery @EU_Startups @Share_Talk @ZaksTradersCafe @zakmir @VOXmarkets @focusIR @LondonSouthEast @BullsNBearsWA @ArthurBenta

#Biotech company @ampliatx has advanced its #cancer drug #narmafotinib across four trials, with data suggesting it may work independently of common tumour-causing #KRAS gene mutations. $ATX #AmpliaTherapeutics #BULLSNBEARSWA #ASX @smh smh.com.au/business/companie…