Thursday saw a notable decline in US stocks, particularly in the tech sector. The Nasdaq Composite led the drop, falling 2.7% as Meta and Microsoft’s earnings reports sparked worries about Big Tech’s future profitability due to rising AI costs.

  • Tech Giants Under Pressure: Both Meta and Microsoft surpassed earnings expectations but alarmed investors with their plans to boost AI spending.
  • Indexes Down: The Nasdaq dropped by 2.7% and the S&P 500 fell 1.9%. The Dow also lost 0.9%.
  • Broader Impact: The decline affected other tech companies too. Amazon and Apple also saw their shares fall before their earnings reports. Nvidia’s shares dropped over 4.5%.
  • Economic Data: New economic data showed higher inflation, affecting Federal Reserve policies. Bond yields, especially the 10-year Treasury, rose sharply.
  • Jobs Data: Jobless claims fell to a five-month low. This comes just before Friday’s critical jobs report.

The recent earnings and economic reports have left investors cautious, balancing tech growth against economic pressures.