Stocks fall with Meta, Microsoft; dollar dips after U.S. data
US stocks end down sharply
Meta Platforms, Microsoft fall after earnings
All eyes on Apple and Amazon.com earnings due after the bell
Updates to 4 p.m. ET
By Caroline Valetkevitch
NEW YORK Oct 31 (Reuters) -World stock indexes dropped on Thursday, with the Nasdaq down more than 2% after Facebook 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 concerns among investors that the pay-off for heavy spending on AI may take longer than many had hoped.
Shares of Meta were down 4.1% while Microsoft was 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.
Another U.S. report showed the employment cost index (ECI), the broadest measure of labor costs, rose 0.8% in the third quarter. That was the smallest gain since the second quarter of 2021 and followed an unrevised 0.9% increase in the second quarter.
"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 down 0.1% at 103.95, 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.
Opinion polls still are putting Republican Donald Trump and Democratic Vice President Kamala Harris neck and neck.
The Dow Jones Industrial Average .DJI fell 378.35 points, or 0.90%, to 41,763.19, the S&P 500 .SPX fell 108.30 points, or 1.86%, to 5,705.37 and the Nasdaq Composite .IXIC fell 512.78 points, or 2.76%, to 18,095.15.
MSCI's gauge of stocks across the globe .MIWD00000PUS fell 12.08 points, or 1.43%, to 832.86.
In Europe, the STOXX 600 .STOXX hit its lowest in seven weeks in a heavy day for earnings. The STOXX 600 .STOXX index ended 1.2% lower.
U.S. Treasury yields rose after the U.S. economic data.
The yield on benchmark U.S. 10-year notes US10YT=RR rose 0.8 basis points to 4.272%, from 4.264% late on Wednesday. They reached a nearly four-month high of 4.339% on Tuesday.
In cryptocurrencies, bitcoin BTC= fell 3.17% to $70,523.00.
Gold retreated after hitting a record high, but was on track for its fourth straight monthly gain.
Oil prices extended gains after settlement, rising on a report that Iran is preparing to attack Israel from Iraqi territory in the coming days.
WTI crude oil futures jumped $1.81 to $70.42 at 3:00 p.m. EDT, after settlement and Brent futures for January delivery jumped by $1.82 to $73.98. 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 Chuck Mikolajczak and Karen Brettell in New York and Amanda Cooper in London; Editing by Toby Chopra, Kirsten Donovan, David Gregorio and Daniel Wallis
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
