U.S. stocks slipped on Thursday morning as investors digested fresh earnings reports from big tech companies. The S&P 500 futures lost 0.78%, while the Nasdaq 100 futures fell about 1%. Futures tied to the Dow Jones Industrial Average declined 210 points, or 0.5%.
Meta Platforms dropped 3% in after-hours trading after missing expectations for user growth and warning of rising costs in 2025. Microsoft’s shares fell nearly 4% after the company gave disappointing revenue guidance. On Wednesday, the major averages posted modest losses.
The Dow Jones Industrial Average declined 0.3%, the S&P 500 dropped 0.2%, and the Nasdaq Composite fell nearly 0.6%. The third-quarter GDP report showed the economy grew at an annualized rate of 2.8%, missing the 3.1% consensus forecast from Dow Jones. Investors are now awaiting the Personal Consumption Expenditures (PCE) price index for September, the Federal Reserve’s preferred inflation gauge.
Economists expect the PCE grew by 0.2% on a monthly basis and 2.1% from a year earlier.
Tech earnings impact stock performance
The PCE reading and Friday’s October payrolls report will inform the Fed’s interest rate decision on Nov.
7 at the end of its two-day policy meeting. “Growth up, inflation down is precisely what you want to see,” said Jamie Cox, managing director at Harris Financial Group. “The Fed doesn’t need to be afraid of a stable and growing economy to normalize rates this cycle so long as disinflation persists.”
More tech earnings are on tap for Thursday, along with the weekly jobless claims report.
European markets opened lower on Thursday, with the pan-European Stoxx 600 index down 0.65% in early trading. Insurance stocks fell 1.42% and retail shares pulled back 1.14%. In extended trading, some notable movers included:
– Microsoft slid nearly 4% after its revenue guidance disappointed analysts.
– Booking Holdings jumped almost 6% after reporting better-than-expected earnings and revenue. – Starbucks ticked nearly 1% lower as global same-store sales dropped 7% in the fiscal fourth quarter. Stock futures suggest a cautious start to Thursday’s trading session as Wall Street reacts to mixed earnings and key economic data.
Investors are closely watching indicators that will influence the Federal Reserve’s upcoming interest rate decision.
