Stocks declined on Thursday as Wall Street processed disappointing quarterly results from major tech companies and braced for additional earnings reports.
The S&P 500 fell 1.86 per cent, closing at 5,705.45, while the Nasdaq Composite dropped 2.76 per cent to end at 18,095.15. Both indexes recorded their largest single-day losses since September 3. The Dow Jones Industrial Average decreased by 378.08 points, or 0.9 per cent, finishing at 41,763.46.
The major averages are set to finish the week lower. The Dow has fallen 0.8 per cent week-to-date, while the S&P 500 and Nasdaq have declined approximately 1.8 per cent and 2.3 per cent, respectively.
Additionally, Thursday marked the final trading day of a turbulent month for the market, as uncertainty looms ahead of the U.S. Presidential election on November 5. The Dow fell 1.3 per cent in October, while the S&P 500 declined 1 per cent, and the Nasdaq was down 0.5 per cent.
Microsoft's shares fell 6 per cent after the tech giant's revenue outlook disappointed investors, overshadowing a stronger-than-expected quarterly earnings report. Meta Platforms saw a decline of more than 4 per cent after missing user growth expectations and warning of significant capital expenditure increases in 2025.
This week’s big tech earnings have been mixed. Alphabet’s shares rose nearly 3 per cent on Wednesday after reporting robust revenue growth, whereas chipmaker AMD dropped over 10 per cent due to disappointing fourth-quarter guidance.
Earnings reports continue Thursday, with major players Apple and Amazon expected to release their results after the market closes.
The latest personal consumption expenditures (PCE) price index indicated that 12-month inflation rose at a rate of 2.1 per cent in September, aligning with estimates and edging closer to the Federal Reserve’s 2 per cent target. The PCE index is the Fed’s preferred measure of inflation.
Thursday’s PCE report, along with Friday’s October payroll and unemployment data, will influence the Fed’s interest rate decision on November 7 at the conclusion of its two-day policy meeting.
Futures
The SPI futures are pointing to a 0.6 per cent fall.
Currency
One Australian dollar at 7.40am was buying 65.82 US cents.
Commodities
Gold has lost 1.54 per cent. Silver has dropped 3.64 per cent. Copper has added 0.25 per cent. Oil has gained 2.83 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.61 per cent, Frankfurt lost 0.93 per cent, and Paris closed 1.05 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei lost 0.5 per cent , while Hong Kong’s Hang Seng lost 0.31 per cent and China’s Shanghai Composite added 0.42 per cent.
Yesterday, the Australian share market closed 0.25 per cent lower at 8160.
Ex-Dividend
Pengna Glbal Private (ASX:PCX) is paying 1.16 cents unfranked
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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