Stocktwits Passport Portfolio: SPY, DIA Edge Higher In October, Beating QQQ And Asian Stocks Amid Tech Volatility

• The Invesco QQQ Trust, which tracks the Nasdaq-100, is poised to end the month lower.
• Among Asian markets, the iShares MSCI South Korea ETF is down the most this month, declining more than 11% as of Oct. 29.
• Korean-listed shares of Samsung Electronics and SK Hynix were down about 17% and 20%, respectively, in October.

Global stock markets are headed for a mixed close in October, with the Dow Jones Industrial Average and S&P 500 poised to end higher, while the tech-heavy Nasdaq and Asian markets lag amid a volatile month for technology stocks. 

Asian markets, including China, Japan, Taiwan, and South Korea, are trending lower as tech-related weakness, central bank policy updates, and inflation concerns weigh on stocks. 

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US Markets Vs Asia Markets

The SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) are headed higher this month, holding strong amid a massive U.S. tech selloff. 

DIA leads, up nearly 3% so far, while SPY is set to close about 1% higher.

Meanwhile, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, is poised to end the month lower as investors grow wary of the sustainability of returns on massive AI infrastructure investments.

Among Asian markets, the iShares MSCI South Korea ETF (EWY) is down the most in October, declining more than 11% as of Oct. 29 as a selloff in chip stocks weighed heavily on Korean stocks.

Meanwhile, the iShares MSCI Taiwan ETF (EWT), the iShares MSCI China ETF (MCHI), and the iShares MSCI Japan ETF (EWJ) are also headed lower in October amid tech weakness and rising global inflationary pressures. 

Tech Pressures, Central Bank Policies Weigh On US And Asian Stocks

Amazon.com (AMZN) reported capital expenditure of $77.3 billion in its latest quarterly results, soaring past Wall Street expectations, and leading to a $7.6 billion cash burn.

Google parent Alphabet Inc. (GOOG, GOOGL) also maintained its full-year spending expectations, while Microsoft lowered it to $170 billion from $175 billion. Tesla pulled back its annual capex forecast to about $20 billion, even though quarterly capex increased 88% to $4.7 billion.

Major chip stocks, including Nvidia Corp. (NVDA), Micron Technology (MU), and Intel Corp. (INTC), are also set to end the month lower. 

The Federal Reserve held interest rates steady at the 3.75%-4.00% target range in its October meeting, saying it would wait for more economic cues before another change. 

In Korea, shares of Samsung Electronics and SK Hynix fell about 17% and 20%, respectively, over the past month. 

Last week, the Bank of Korea paused interest rate hikes after raising rates in July and August, citing strong export and investment growth, 2.9% inflation, and financial-stability concerns. 

On Friday, the Bank of Japan held its benchmark interest rate at 1.25%, but raised its inflation forecast and signaled potential future tightening. 

Retail Stance: US Vs Asia Markets

On Stocktwits, retail sentiment around SPY was ‘bullish’ at the time of writing, while it was ‘bearish’ for QQQ and DIA.

Meanwhile, retail sentiment around EWT, MCHI and EWY was ‘bullish,’ while it was ‘neutral’ for EWJ.

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