Tech Earnings Weigh on Wall Street

Tech Earnings Weigh on Wall Street as US Midterms and US$110 Oil Shape the Outlook

October 31, 2026

Dave Dookie, CEO

• US technology stocks retreat on earnings disappointments: The Nasdaq Composite fell 2.00% and the S&P 500 lost 0.56% as weak results from Amazon and Intel hit sentiment, with Alphabet down 12.61% on the week.

• Midterms set to test Washington's balance of power: Forecasters favor Democrats to win the House on November 3, while Senate control is close to a toss-up.

• Europe outperforms: Germany's DAX rose 2.53% and France's CAC 40 2.40%, helped by euro-area growth of 0.4% in the third quarter, double expectations.

• Trinidad & Tobago equities edged higher: The Composite Index gained 0.56% to 999.19, with 12 advancers against 5 decliners and trading volume up 111%.

• T&T bonds rally as US yields ease: The 10-year Treasury yield fell to about 4.93%, and the T&T 2038 rose to 93.90/94.50. The new TSTT 9.75% 2036 notes are quoted just below par.

Americans vote November 3 for all 435 House seats and 35 Senate seats. Nonpartisan forecasters favor Democrats in the House, while Senate control remains closely contested. A split Congress would shift President Trump's final two years toward negotiation and executive action rather than new legislation.

Trinidad and Tobago would be affected through several channels, starting with energy policy. US Treasury licenses for T&T's development of Venezuela's Dragon gas field remain an executive function, outside Congress's direct control. A Democratic House could, however, intensify oversight of Venezuela policy and the US military presence in the Caribbean, where T&T has worked closely with Washington.

Secondly, Bloomberg reported this week that Brent topped US$117 on signs that the US may resume strikes on Iran after the elections, while Ukraine has reportedly paused attacks on Russian refineries until the vote is over. Any post-election escalation would lift T&T's energy revenue but also import costs and global inflation.

Wall Street ended the week lower as third-quarter earnings disappointed. Amazon reported soaring spending and its slowest core e-commerce growth in three years, and Intel shares fell sharply after weak fourth-quarter guidance. Alphabet dropped 12.61% over five days, Meta 4.30% and Nvidia 3.00%, while Caterpillar (-9.35%) and Boeing (-8.92%) also fell. The energy markets performance was much better, ExxonMobil (+2.21%) and Chevron beat profit forecasts on strong refining margins. A US$6.3 billion hack at Binance added to risk aversion. Treasuries rallied, with the 10-year yield easing to 4.93% and the 30-year to 5.31%.

United Kingdom and Europe growth surprise lifts shares. The STOXX Europe 600 rose 1.73%, with the DAX up 2.53%, the CAC 40 up 2.40% and Italy's FTSE MIB up 1.94%. Euro-area GDP grew 0.4% in the third quarter, twice the expected pace, despite a small contraction in France. Siemens Energy gained 6.94% and TotalEnergies 2.37%, while Banco Santander fell 12.09%. The FTSE 100 added a modest 0.37%, held back as BP slipped 1.81% despite reporting its highest profit in 18 years.

In Asia there was mixed performance. Japan's Nikkei 225 rose 0.95% and Hong Kong's Hang Seng 0.87%. Australia's ASX 200 gained 1.28%, helped by BHP (+4.56%). Mainland China lagged, with the Shanghai Composite down 2.48%.

Trinidad & Tobago equities traded firm as trading picks up. The Composite Index rose 0.56% to 999.19 (+5.57% year to date), the All T&T Index gained 0.63% to 1,401.68 and the Cross Listed Index added 0.34%. Breadth was positive, with 12 stocks advancing and 5 declining. Trading volume more than doubled, up 111.27% to 1.38 million shares, and value rose 9.55% to TT$9.55 million. Guardian Media led volume with 33.31% of shares traded, followed by Massy and NGL.

JMMB Group was the top advancer, up 18.67% to TT$0.89, ahead of an interim dividend decision. Trinidad Cement rose 12.99% to a 52-week high of TT$2.00, and Prestige Holdings gained 9.09% to TT$12.00. Domestic banking system excess liquidity fell about TT$452 million to TT$3.69 billion.

In the regional bond market, Trinidad and Tobago's USD bonds gained ground as US Treasury yields eased, though longer maturities still trade below par. The 2038 bond, which was bid at 92.60 on October 9, has gained more than a point as the 10-year Treasury yield fell from 5.24% to about 4.93%. Its yield of just under 7.0% is now in line with the Dominican Republic's BB-rated 2038 (6.75%) but still above Jamaica's 2037 (6.31%).

Telecommunications Services of Trinidad and Tobago's launched new 10-year Global bonds. TSTT, 51% owned by the state's National Enterprises and 49% by Cable & Wireless, is refinancing its 8.875% notes due 2029 through US$500 million, dual-currency offering. The notes offer 9.75% coupon for 10 years.

Despite the small discount that new TSTT Notes traded at this week, the yield is about 300 basis points above the T&T 2036 bond’s 6.86%, reflecting five factors. The November 3 maturity date suggests trading close to issuance, when selling by allocated investors and wider dealer quotes can push prices below the offering price. S&P rates the notes BB-, with Moody’s expected at B2, well below the sovereign’s BBB-/Ba2. S&P also expects debt near four times EBITDA alongside substantial investment in LTE expansion and 2G and 3G retirement. TSTT earns mainly TT dollars but pays the coupon in US dollars amid Trinidad’s foreign exchange shortage. Finally, the company’s implied link to Government benefits investors without providing a sovereign guarantee, while strong mobile competition adds pressure.

The bonds are senior secured, sharing the existing collateral package, and S&P describes the refinancing as debt neutral. It pushes TSTT's maturities out to an average life of about nine years and removes the 2027–2029 amortization pressure.

Market outlook

Next week's US midterm results will dominate global markets, alongside any post-election moves on Iran that could push Brent, already near US$113–117, higher still. A divided Congress would likely limit large fiscal changes, which could help keep Treasury yields below their October highs. Investors will also watch the remaining big-tech earnings for signs that heavy AI spending is producing returns.

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