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This newsletter covers critical developments in the markets over the past 24 hours, including Ericsson’s strong Q3 performance, a steep decline in China’s stock market, the S&P 500 reaching an all-time high, Google’s new energy deal, and shifting oil prices. Here’s what you need to know:

Ericsson Exceeds Q3 2024 Expectations

Ericsson delivered stronger-than-expected results for Q3 2024, with net income surging to SEK 4.5 billion. The Swedish telecom giant’s performance was buoyed by higher 5G infrastructure sales in key markets like North America and Europe. The company’s ongoing cost-cutting measures and operational improvements also contributed to the earnings beat. Ericsson’s strategic focus on securing major telecom contracts has been instrumental in bolstering its financial outlook. Despite global macroeconomic challenges, Ericsson maintained its position as a leading 5G provider, which bodes well for its long-term growth prospects. Investors and analysts alike are keeping a close eye on the company’s future guidance, which remains positive.

China Stocks Plunge Amid Economic Worries

China’s stock market faced a sharp sell-off on October 14, with the CSI 300 dropping 2.2% and the Hang Seng Index plunging 3.9%, marking the worst trading day in over a year. Investors are increasingly pessimistic about China’s economic outlook, particularly in the property sector, which continues to struggle. Furthermore, the decision by the People’s Bank of China to leave interest rates unchanged—contrary to expectations of a cut—has further dampened market sentiment. Global investors sold approximately $1.8 billion in Chinese equities as concerns about growth and government policy persisted. Analysts are now debating the potential effectiveness of future stimulus measures.

S&P 500 Hits Record High on Economic Optimism

The S&P 500 reached a new all-time high on October 14, signaling strong investor confidence in the U.S. economy’s resilience. Gains in technology and consumer discretionary sectors drove the surge, with companies like Apple and Amazon leading the charge. A combination of lower inflation and expectations that the Federal Reserve may pause further rate hikes has helped fuel the market rally. The index’s recent milestone also coincides with the beginning of corporate earnings season, which many believe will continue to provide positive momentum for the market. This new high reflects optimism that the U.S. economy is navigating inflationary pressures better than anticipated.