Traders react after the closing bell on the floor at the New York Stock Exchange on March 20, 2024.
Brendan Mcdermid | Reuters
Stock futures slid on Thursday morning as Wall Street digested weaker-than-expected earnings reports from megacap technology names and awaited further results.
S&P 500 futures slipped 0.7%, while Nasdaq 100 futures fell 0.6%. Futures tied to the Dow Jones Industrial Average declined 246 points, or 0.6%.
In premarket action, Meta Platforms dropped 3% after missing the Street’s expectations for user growth and warning that capital expenditures will significantly rise in 2025. To be sure, Meta managed to beat on both top- and bottom-lines in the third quarter. Meanwhile, Microsoft’s revenue guidance disappointed investors, dragging shares nearly 4% lower.
Tech earnings continues on Thursday with results from tech giants Apple and Amazon.
The latest personal consumption expenditures price index on Thursday showed inflation rose in-line with estimates and moved closer to the Federal Reserve’s 2% target. The PCE reading is the Fed’s preferred inflation gauge.
Thursday’s PCE reading, along with Friday’s October payrolls report, will inform the Fed’s interest rate decision on Nov. 7 when it ends its two-day policy meeting
“Growth up, inflation down is precisely what you want to see,” said Jamie Cox, managing director at Harris Financial Group. “The Fed doesn’t need to be afraid of a stable and growing economy to normalize rates this cycle so long as disinflation persists.”
During regular trading Wednesday, the major averages posted modest losses. The S&P 500 declined 0.3%, while the Dow dropped 0.2%, and the Nasdaq Composite fell nearly 0.6%.
