US Market October Movers & Shakers: Reddit Leads October Gains, Tech Sell-Off Erases October Gains as Election Looms

In 2025, Reddit plans to modernize its search products with enhanced results pages, autocomplete features, and the integration of large language models to improve search outcomes, CEO Steve Huffman stated during a post-earnings call. Analysts have noted that the company's content licensing agreements with Alphabet (GOOGL.O) and Microsoft-backed OpenAI for training their AI models have also contributed to its revenue growth.

However, while Reddit's rapidly expanding user base and untapped advertising assets suggest a strong growth trajectory, some analysts remain cautious. Bank of America analysts indicate in a research note that sustained user and revenue growth may be volatile based on historical trends. They also emphasize that tougher revenue comparisons in the upcoming quarters are likely to slow growth. The bank maintains a neutral rating, citing the stock's premium valuation, which factors in near-term growth and margin potential.

Among these, MSTR is noteworthy for investors, as the company recorded a 45.02% increase this month, bringing its year-to-date gains to over 280%. According to Bloomberg, MicroStrategy's stock performance over the past two years has outpaced nearly all major US stocks, including Nvidia. The unconventional decision by co-founder and chairman Michael Saylor to purchase Bitcoin four years ago to hedge against inflation has propelled a staggering 1,700% rise. MicroStrategy has shifted from utilizing cash flow to issuing convertible notes for Bitcoin purchases and plans to explore additional funding methods for further acquisitions. This comes as the firm has been rebranding itself as a “Bitcoin development company” this year.

On October 30, MicroStrategy's stock fell approximately 4.23% to $247.31, as the company's software business reported revenue of $116.1 million, down 10.3% from the third quarter of 2023 and about 5.22% below analysts' expectations. Analysts hold varying views on the future outlook for MicroStrategy's stock. Economist Peter Schiff predicts that MicroStrategy will collapse, labeling it the most overvalued stock in the MSCI global index. However, others believe that upcoming changes in accounting rules may lead to profitability. These changes could allow MicroStrategy to reassess its Bitcoin holdings at market prices, potentially resulting in substantial net profits.

From a sector performance perspective, the financial sector led the way with a gain of 2.05%, followed closely by Communication Services and Technology, which rose by 1.87% and 1.45%, respectively.

Due to a sell-off in tech stocks on Thursday, the US stock market gave back all of October's gains, resulting in the largest single-day drop on Wall Street in nearly two months. On the last trading day of October, the S&P 500 closed down 1.9%, while the tech-heavy Nasdaq Composite fell 2.8%. Large tech stocks led the declines, with Microsoft falling 6.1%, marking its biggest single-day drop in two years. Meta reported its earnings on Wednesday but saw its stock decline by 4.1%. The market decline occurred ahead of earnings reports from two other trillion-dollar tech giants, Apple and Amazon. Apple informed investors of moderate growth in smartphone sales, leading to a drop in its stock price in after-hours trading, while Amazon saw a significant increase due to strong performance in its cloud computing division.

As the election approaches, investor anxiety is intensifying, further exacerbated by the upcoming Federal Reserve meeting. US Treasury yields and the dollar have risen to their highest levels in about three months: the policy-sensitive two-year US Treasury yield edged up to 4.16%, a 0.52 percentage point increase, on track for its largest monthly gain since February 2023. The benchmark 10-year US Treasury yield is expected to record its largest monthly gain since September 2022, rising 0.5 percentage points to around 4.28%.