Stock Market Falls After Hitting Record Highs. What Changed Overnight?

Foreign media reported that Broadcom (AVGO, US) is arranging over $50 billions in financing for its joint development of custom AI chips with OpenAI, marking the latest example in the trend of large-scale AI infrastructure financing deals.

The Federal Reserve stated on Wednesday that the intervention to support the Japanese yen at the end of July, jointly conducted with Japan, was led by the U.S. Treasury Department, and the Federal Reserve did not use its own funds in the operation.

On October 7 – Citi analysts maintained a "Buy" rating on Wellington-based Xero (XRO.AX), with a target price of AUD 91.55. In light of the recent share price weakness, the brokerage initiated an active catalyst watch ahead of the H1 financial results. H1 revenue is expected to see strong growth, including contributions from the recent acquisition of Melio. The software company acquired small business bill payments platform Melio in 2025 for up to USD 3 billion. FY2027 adjusted EBITDA is forecast to reach the upper end of Xero's guidance range (NZD 860 million to NZD 920 million). According to data compiled by London Stock Exchange Group (LSEG), 11 out of 13 analysts have a "Buy" or higher rating on the stock, while 2 have a "Hold" rating. The median target price is AUD 118.5. As of the previous trading day's close, the share has declined 50.8% year to date. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. As automated translation may be inaccurate or lack context, Reuters does not guarantee the accuracy of automated translations and provides them solely for readers' convenience. Reuters will not be liable for any damage or loss caused by the use of the automated translation feature.)

Reuters, October 7 (Angela Christy M/Danielle Kaye) – Levi Strauss (LEVI.N) raised its annual profit forecast on Wednesday after benefiting from tariff rebates and betting on strong holiday demand for its premium jeans and sweaters. However, the company’s shares still fell 2% in after-hours trading as sales in the US and Europe came in below expectations. Further details: In the quarter ended August 30, Levi Strauss received a $79 million tariff rebate under the International Emergency Economic Powers Act, with plans to reinvest around $60 million of it this year into promotions and marketing activities. Comparable sales in its directly operated stores were flat in the third quarter. CEO Michelle Gass stated that the business underperformed due to declining US sales and “abnormally” warm weather in Europe, which suppressed store traffic. Gass noted that back-to-school marketing in the US focused too much on loose-fitting pants, overlooking the popularity of low-rise styles. Nevertheless, the women’s apparel line was a highlight, partly due to the expansion into tops, skirts, and dresses beyond denim pants. According to Gass, non-denim bottom products contributed about half of the company’s revenue growth this quarter. Gass added that as the jeans maker targets high-income consumers, the premium “Levi’s Blue Tab” line saw double-digit growth. Meanwhile, sales in Asia were boosted by a 13% increase in China and a new collaboration with singer Rosé. The company raised its full-year organic revenue growth forecast to 6%, reaching the upper end of its previous guidance of 5.5–6%. Full-year adjusted earnings per share guidance was also raised to $1.54–$1.56, up from the previous $1.46–$1.52. According to data compiled by London Stock Exchange Group (LSEG), net revenue for the quarter ended August 30 rose 4% to $1.61 billion, roughly in line with expectations of $1.62 billion. Adjusted earnings per share for the quarter were $0.48, surpassing analysts’ estimates of around $0.36. Independent retail adviser Bruce Winder commented that consumer-facing operations underperformed in the third quarter, adding that the US market continues to face challenges due to persistently high fuel prices. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several languages. Reuters does not guarantee the accuracy of automated translation and is not liable for any damage resulting from the use of translation functions. Automated translation is provided solely for convenience.)