Stocks drop with Meta, Microsoft; dollar eases after U.S. data
US stocks down sharply late morning
Meta Platforms, Microsoft fall after earnings
All eyes on Apple and Amazon.com earnings due after the bell
Updates to 11:15 a.m. ET
By Caroline Valetkevitch and Amanda Cooper
NEW YORK LONDON Oct 31 (Reuters) - World stock indexesdropped on Thursday, with the Nasdaq down more than 2% afterFacebook owner Meta Platforms META.O and Microsoft MSFT.O both warned of rising costs for artificial intelligence, while the dollar weakened slightly after U.S. data did little to suggest a change to Federal Reserve policy.
The reports added to concernsamong investors that the pay-off for heavy spending on AI may take longer than many had hoped.
Shares of Meta were down 3.2% while Microsoft was 5.6% lower, with both weighing on the Nasdaq and S&P 500.
All eyes will be on results from Amazon.com AMZN.O and Apple AAPL.O, when they report after the closing bell.
Data on Thursday showed U.S. consumer spending increased slightly more than expected in September, putting the economy on a higher growth trajectory heading into the final three months of the year.
"Spending has grown, but it’s increasingly concentrated in non-discretionary areas like health care, prescription drugs, housing, and utilities," said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
The dollar also came under pressure against the yen after the Bank of Japan took a less dovish tone than expected, while the euro was stronger after data showed the bloc's inflation accelerated more than expected in October, bolstering the case for caution in European Central Bank interest rate cuts.
The dollar index =USD, which measures the greenback against a basket of currencies, was last flat at 104.13, with the euro EUR=EBS up 0.1% at $1.0866. Against the Japanese yen JPY=EBS, the dollar weakened 0.53% to 152.59.
Traders see a 25 basis point cut at the Fed's Nov. 6-7 meeting as near certain, but only a 70% chance of a 25 basis point reduction at both its November and December meetings, according to the CME Group's FedWatch Tool.
Friday's U.S. jobs report for October will be closely watched as well as the U.S. presidential election on Tuesday.
Opinionpolls still areputting Republican Donald Trump and Democratic Vice President Kamala Harris neck and neck.
On Wall Street, the Dow Jones Industrial Average .DJI fell 362.70 points, or 0.86%, to 41,778.84, the S&P 500 .SPX fell 84.93 points, or 1.46%, to 5,728.74 and the Nasdaq Composite .IXIC fell 425.71 points, or 2.29%, to 18,182.22.
MSCI's gauge of stocks across the globe .MIWD00000PUS fell 10.72 points, or 1.27%, to 834.22.
In Europe, the STOXX 600 .STOXX hit its lowest in seven weeks in a heavy day for earnings. The STOXX 600 index fell 1.5%.
U.S. Treasuryyields rose after the U.S. data showing falling wage inflation and strong consumer spending.
Benchmark 10-year yields US10YT=RR were last up 4.4 basis points at 4.309%. They reached a nearly four-month high of 4.339% on Tuesday.
In cryptocurrencies, bitcoin BTC= fell 3.02% to $70,640.00. Ethereum ETH= declined 4.98% to $2,545.70.
Gold retreated after hitting a record high, but the precious metal was on track for its fourth straight monthly gain.
Spot gold XAU= was down 0.7% at $2,766.59 per ounce by 9:35 a.m. ET (1335 GMT) , after hitting a record high of $2,790.15 during the session. Prices have firmed around 5% for the month so far.
U.S. crude CLc1 rose 1.33% to $69.52 a barrel and Brent LCOc1 rose to $73.23 per barrel, up 0.94% on the day.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Additional reporting by Karen Brettell in New York and Kevin Buckland in Tokyo and Wayne Cole in Sydney; Editing by Toby Chopra, Kirsten Donovan and David Gregorio
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
