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
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
