Stock Market Report for Sept. 29: Nasdaq Slips 0.92%
Amid a mixed session on Wall Street, major technology stocks including Microsoft and Oracle struggled for direction, trading near flat.
The Nasdaq Composite fell 0.92% from the previous session on Monday (local time). According to Yonhap News, the U.S. 10-year Treasury yield surged to its highest level since 2007, and international oil prices were jolted by uncertainty over U.S.-Iran negotiations, adding downward pressure on the index. The Dow Jones Industrial Average slipped 0.67% and the S&P 500 lost 0.77%. Individual tech stocks, however, fluctuated within a narrow range, diverging from the indices' declines.
Mega-Cap Tech Stocks, Mixed in Flat Trading
| Stock | Price | Change | Market Cap | P/E | EPS Growth |
|---|---|---|---|---|---|
| NVIDIA | 225.07 | +0.00% | $5.43T | 28.5 | 6599.3% |
| Apple | 341.07 | +0.02% | $4.98T | 39.1 | 2258.6% |
| Alphabet (GOOGL) | 343.92 | +0.00% | $4.21T | 17.3 | 3419.4% |
| Microsoft | 516.17 | +0.04% | $3.83T | 28.7 | 3138.7% |
| Amazon | 249.67 | +0.00% | $2.69T | 20.1 | 2879.9% |
| TSMC | 450.61 | -0.00% | $2.34T | 33.6 | 4430.2% |
| Meta | 751.66 | -0.03% | $1.91T | 28.3 | -256.0% |
| Oracle | 137.10 | -0.02% | $0.41T | 21.5 | - |
Microsoft closed higher at 516.17, up from 497.93 the previous day, maintaining its $3.83 trillion market cap. It trades at a P/E of 28.7 with an EPS growth rate of 3,138.7%. Oracle moved in the opposite direction, easing slightly from 139.54 to 137.10 and trading at a P/E of around 21.5. Apple rose 0.02% to 341.07, while Amazon held flat at 249.67. Given that the indices fell nearly 1%, the resilience of individual mega-cap tech stocks was notable.
Meta and Tesla Tumble; Semiconductors Wobble
The pattern among decliners was clear. Meta slipped 0.03% to 751.66, with its EPS growth rate turning negative at -256.0%. Tesla also sank to 372.11, weighed down by a P/E of 344.5 and an EPS growth rate of -4,709.0% — numbers that are burdensome in themselves. The stock's price has run well ahead of its earnings, with profits failing to provide support.
The semiconductor sector faced additional headwinds. According to a Reuters-Yonhap report, OpenAI temporarily suspended testing of its cutting-edge AI models for safety reviews, sending memory chip stocks plunging. A testing halt at OpenAI, which sits at the front line of AI demand, could immediately feed into concerns about shrinking semiconductor orders. TSMC held flat at 450.61, while Intel finished lower at 123.00. Intel's earnings base is so weak that its P/E cannot be computed.
High P/E vs. Low P/E: Investment Implications
The valuation gap is the key theme. Alphabet, at a P/E of 17.3, is the cheapest among tech giants with market caps above $4 trillion, while posting an EPS growth rate of 3,419.4%. By contrast, Broadcom trades at a P/E of 45.1, Palantir at 160.7, and AMD at 161.3 — meaning growth expectations are already largely priced in. NVIDIA, too, maintains a P/E of 28.5 despite explosive earnings growth of 6,599.3%, suggesting earnings have relatively caught up with the stock among growth names.
The contrast with financials and traditional sectors is also striking. JPMorgan trades at a P/E of 14.7 and Berkshire Hathaway at 12.7, placing both in undervalued territory. Exxon Mobil fell 0.01% despite surging oil prices, exposing sluggish earnings with an EPS growth rate of -1,454.1% — proof that rising oil prices do not always benefit refiners.
Outlook: Rates and Oil in the Way; Earnings Season Is the Decider
In the short term, U.S. long-term interest rates and international oil prices will weigh on the market. Domestic markets remain within the same current, with Ajou Economy forecasting KOSPI weakness and heightened semiconductor stock volatility. On a stock-specific level, however, the October earnings season is expected to be the turning point. The next moves for Microsoft and Oracle, which stalled near flat, will likewise hinge on cloud- and AI-related earnings figures. It should also be noted that the eye-popping EPS growth rates are unsustainable figures driven largely by base effects. Ultimately, what the market will focus on next is not the size of growth, but whether it can be sustained.
