Bear market weighs on Chinese stocks, while sellers return to tech

Hello, this is Leonie Kidd from today’s Morning Squawk.

Volume growth during very early trading was overwhelmingly downward.

Futures deteriorated further, with Asia closing in the deep red and Europe generally lower.

The “all or nothing” approach to technology seems to continue…

Semiconductor stocks are once again under pressure, with futures steadily falling this morning.

Earnings takeover from Wall Street was mixed, but investors appear to be more hung up on Tesla’s disappointing predictions than Meta’s.

Tesla’s revaluation: Better-than-expected third-quarter results failed to support Tesla stock, which fell in pre-market trading. A decline in the average selling price of cars and a shortage of battery supplies weighed on profits.

Musk also warned that the group is “not going to change” its robotaxi operations this quarter.

Former Tesla director Steve Westley told CNBC that Musk needs to expand in self-driving and robotics to justify his $1.6 trillion valuation.

Meta revaluation: Meta’s stock price also turned negative in pre-market trading. The company’s stock initially rebounded in extended trading Wednesday after the quarter’s sales beat.

Mehta also convinced Mark Zuckerberg to stay in California for eight years by offering him a new class of stock to help manage the so-called “California Wealth Tax.”

At 11 a.m., Squawk on the Street will talk with Bill Ackman about his technology portfolio, including Meta, big market trends and the midterm elections.

Brent crude oil and WTI are rising in early trading. The latest geopolitical developments driving this movement include:

A New York Times report outlined how the US and Israeli militaries have developed plans to resume attacks on Iran after the midterm elections. The Times, citing unnamed US officials, said it would be a “short but intensive” operation. The State Department announced overnight that it had ordered all non-emergency government employees to leave Saudi Arabia amid the Houthi attack on the kingdom.

China benchmark CSI300 It entered bear market territory today, down 20% from its June peak. The index, which covers 300 major stocks listed in Shanghai and Shenzhen, fell for the 10th consecutive week.

But it’s not all doom and gloom. Sovereign funds are pouring billions of dollars into China, with investments surging 190% from 2025, according to the latest data seen by CNBC. You can read more about this in CNBC’s Li Yingshan’s report.

Major European companies:

Consumer giant Nestlé is rising in European trading after sales beat expectations for the third quarter. British bank Barclays is cutting 5,000 jobs this year after reporting weaker-than-expected profits this quarter, sending its shares lower in London. European tech giant SAP is under pressure along with other European tech stocks despite raising its revenue outlook. NBIM, the world’s largest sovereign wealth fund, posted a $30 billion loss amid bond market turmoil.

In an exclusive interview with CNBC, Nvidia Boss Jensen Huang said market fundamentals showed demand for NeoCloud was “unexpected”.

Shares of the neo-cloud companies are under pressure again in pre-market trading, with both companies expected to fall more than 5%. coreweave and Nevius. Selling pressure is also spreading to major companies, with Nvidia itself falling before it even gets close. intel and Qualcomm.

If, like me, you’ve never heard of PHP before, join the ranks of those trying to understand this software that has sparked warnings from governments around the world.

Why it matters: PHP is an open-source programming language used to power websites. The discovery of flaws in the system has led governments around the world to take their websites offline.

Google, OpenAI, and Amazon are working to discover these vulnerabilities to protect your systems.

Authorities from the FBI to Britain’s National Health Service to police forces around the world have issued warnings. You can follow key developments here.

James Talarico hits back at Elon Musk over racial tensions in Texas Senate

James Talarico, the Democratic candidate running for the U.S. Senate seat from Texas, on Wednesday night hit back at Elon Musk’s X post in which the world’s richest man said hours earlier that “there’s something seriously wrong with Talarico.”

Talarico responded to Musk’s tweet, writing, “There is something deeply flawed in our political system that allows a trillionaire to buy a private US Senate seat.”

—CNBC’s Jonathan Bunyan, Laura Kolodny, Jenny Li, Yingshan Li, Anique Bao and Dan Mangan contributed to this report.

John Meloy edited this version.