S&P 500 and Nasdaq Between 1% and 2% After Big Tech Outlook Disappoints Investors

Barry Adams
31 Oct, 2024
New York City

Stock market indexes on Wall Street eased after big tech earnings fell short of market expectations. 

The S&P 500 index fell 0.8% and the Nasdaq Composite declined 1.3% following disappointing announcements from Microsoft and Meta Platforms. 

Investors also reacted to the latest quarter results from Uber Technologies, eBay, Roku, Starbucks, Carvana, and Booking Holdings. 

On the economic front, the Personal Consumption Expenditure Price Index rose by 0.2% from the previous month in September, following a 0.1% increase in the previous month, the U.S. Bureau of Economic Analysis reported Thursday.

The Core PCE index, which excludes food and energy prices, accelerated to a five-month high of 0.3% from the upwardly revised 0.2% in the previous month. 

On an annual basis, the alternative measure of inflation fell to 2.1%, the lowest since February 2021, from an upwardly revised 2.3% in the previous month. 

The annual core rate of inflation was steady at 2.7%, highlighting the stubborn and well-anchored inflation into the economy. 

Despite eleven interest rate hikes over 2022 and 2024, the Fed has failed to bring down inflation to its target rate of 2%, and prices are still rising at a faster rate as many businesses and service providers are looking to pass on higher costs to consumers. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,768.24, the Nasdaq Composite fell 1.3% to 18,365.20, and the Russell 2000 index declined 0.2% to 2,233.04. 

The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds inched higher to 4.50%.

WTI crude oil increased $0.69 to $69.33 a barrel, and natural gas prices edged down 7 cents to $2.77 a thermal unit.

Gold fell by $18.82 to $2,766.72 an ounce, and silver decreased by $0.47 to $33.25.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.94.

 

U.S. Stock Movers

Microsoft Corp. declined 4.8% to $411.89 after the software company reported strong quarterly results, but the company's revenue outlook for the current quarter fell short of investor expectations. 

Microsoft estimated revenue in the fiscal second quarter to range between $68.1 billion and $69.1 billion.

Booking Holdings increased 6.3% to $4,745.43 after the online reservation company's adjusted earnings in the latest quarter surpassed market expectations. 

Starbucks Corp. increased 2.4% to $95.94 after the coffee chain operator reported sharply lower-than-expected revenue and earnings in its latest quarter amid demand weakness in the U.S. and China. 

Global comparable same-store sales plunged 7% in the fiscal fourth quarter. 

Uber Technologies dropped 9.9% to $71.77 after the ride-hailing service provider reported strong quarterly earnings but gross bookings disappointed investors. 

Carvana Co. jumped 20.4% to $249.39 after the used car dealer reported sharply higher sales and earnings. 

The company also lifted its full-year earnings outlook, and added results are expected to surpass the high end of its previous estimate.