S&P 500 Tests 7,580 Support as Wall Street Intensifies AI Capex Scrutiny

Tech Multiples Face Gravity

The S&P 500 oscillated around the 7,580–7,610 zone while the tech-heavy Nasdaq Composite endured heightened intraday swings, as Wall Street asset allocators questioned the duration and capital efficiency of Big Tech's unprecedented infrastructure spending.

The Emerging Market Debate

• Capex vs. Monetization: Combined quarterly capital expenditures by Microsoft, Alphabet, Meta, and Amazon surpassed $60 billion, prompting hedge funds to demand concrete enterprise software revenue acceleration.
• Valuation Compression: High-beta software multiples contracted an average of 8% through late October, even as corporate balance sheets remained debt-free.
• Earnings Bar: Forward 2027 guidance has become the defining filter between market leaders and underperforming growth stocks.