US stocks opened lower on Thursday, with Meta and Microsoft tanking as Wall Street wavered despite promising trade talks between President Donald Trump and President Xi Jinping.
Summary
- S&P 500 and Nasdaq fell sharply as Meta and Microsoft stocks slid.
- While Dow Jones Industrial rose in morning trades, the blue chip index had dipped at open.
- Investors are digesting tech earnings, Federal Reserve chair Jerome Powell’s remarks and news of a U.S.-China trade truce.
US stocks shed gains as markets weighed the latest earnings reports as well as the outcome of the meeting between Donald Trump and Xi. The S&P 500 slipped 0.6% and the Nasdaq Composite shed 1.1% to lead the major indexes lower.
Meanwhile, the Dow Jones Industrial Average fell sharply at open before steadying to hover flat.
US stocks fell as Meta, Microsoft tanked
The sharp selling across the benchmark index S&P 500 and tech heavy Nasdaq came as shares of tech giants Meta and Microsoft dropped. The Meta stock dumped 10% and Microsoft slid more than 2%, with investors jitters cropping up amid concerns around the companies’ spending outlooks.
Trump-Xi talks, Fed outlook
US stocks continue to hover near record highs despite the latest dip. However, the sell-off pressure that followed the Federal Reserve’s interest rate cut on Oct. 29 lingered on Thursday.
Wall Street appeared spooked after Fed chair Jerome Powell highlighted that the market’s anticipation of a fresh rate cut in December may be a bit stretched. In comments following the 25 basis point rate cut, Powell said another reduction at the central bank’s Dec meeting is “not a foregone conclusion.”
“What do you do when you are driving in the fog? You slow down,” Powell said.
A reaction across equities also reflected in cryptocurrencies amid a broader slip for risk assets.
On Oct. 30, the mood remains one of caution despite significant positive developments related to the Trump-Xi meeting.
Notably, it was revealed that the U.S. and China have agreed a one-year trade truce. Trump, in comments after the meeting, said that the two leading economies, and top trading partners, will soon have a formal deal.
Market observers see this as a scenario that will likely bring a sense of certainty to markets over coming months.
