US Stocks Fall for 2nd Day, as Microsoft and Meta Weigh
Stocks in the US closed sharply lower on Thursday, led by the tech-heavy Nasdaq, as disappointing earnings guidance from Big Tech giants Microsoft and Meta raised concerns about their high AI costs and potential profit pressures.
The S&P 500 lost 1.8%, the Nasdaq 100 tumbled 2.4%, booking their worst day in over a month and the Dow declined 378 points. Both Meta and Microsoft flagged significant increases in AI-related spending, weighing on investor optimism and hitting shares in other major tech companies, with Nvidia and Amazon down as well.
In economic news, the latest PCE index showed core inflation rose 2.7% annually in September, while jobless claims dropped to a five-month low of 216,000, indicating a robust labor market and diminishing hopes for imminent Fed rate cuts. Apple and Amazon are set to report earnings after the bell, rounding out a challenging week for Big Tech stocks.
Source : Trading Economics