The stock market took a tumble on Thursday, with the S&P 500 and Nasdaq suffering their worst day in over a month. The S&P 500 fell 1.86% to close at 5,705.45, while the Nasdaq lost 2.76% to finish at 18,095.15. The Dow also slid 378.08 points, or 0.9%, to end at 41,763.46.
Tech stocks led the decline, with Facebook parent Meta dropping more than 4% after missing expectations for user growth and warning of significantly higher expenses in 2025. Investment strategist Ross Mayfield commented, “I think we’re getting to the point where AI enthusiasm and potential is not enough. These companies are not quite delivering the growth that is priced into them.”
Earnings from big tech companies have been mixed this week.
Markets slump after Nasdaq earnings report
Microsoft shares rose nearly 3% on Wednesday following strong revenue growth, while chipmaker Nvidia fell more than 10% due to disappointing fourth quarter guidance. More megacap tech stocks are set to report results after the bell on Thursday.
The latest price index showed 12-month inflation rising at a rate of 2.1% in September, in line with estimates and moving closer to the Federal Reserve’s 2% target. This PCE reading, along with the October payrolls report and unemployment data due Friday, will inform the Fed’s interest rate decision on November 7. The major averages are on track to end the week in the red, with the Dow down 0.8%, the S&P 500 off around 1.8%, and the Nasdaq declining 2.3% week to date.
Thursday marked the final trading day of a choppy month for the market amid heightened uncertainty ahead of the U.S. Presidential election on November 5. In October, the Dow lost 1.3%, the S&P 500 shed 1%, and the Nasdaq fell 0.5%.
