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
Aset Berkaitan
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
