The local bourse mirrored a decline in global markets on Thursday as investors processed corporate earnings from major tech firms and key US inflation data. Investor optimism for a tech-driven rally weakened following underwhelming quarterly results from Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT). Meta's (NASDAQ:META) user growth lagged behind expectations, and Microsoft's revenue forecast disappointed, with both companies announcing increased spending on AI infrastructure, sparking concerns over profitability pressures. Consequently, shares of Meta and Microsoft dropped, along with other tech stocks.
European stocks closed lower on Thursday, weighed down by another round of disappointing earnings and economic data, which investors examined for insights into the ECB's policy direction. The Eurozone’s STOXX 50 dropped 1.30% to 4 821, while the STOXX 600 fell 1.20% to 505. Microsoft's slower growth outlook and Meta's “significant acceleration” in AI expenses impacted European tech stocks, leading to a more than 2% decline for both SAP (BIT:SAP) and ASML (AS:ASML).
The Hang Seng fell by 0.30% on Thursday, marking its second consecutive loss as tech and consumer stocks declined. A slump in US futures weighed on sentiment ahead of upcoming US inflation and jobs data. Concerns also emerged over the potential implications of next week’s US election and a possible return of Donald Trump to office. The index lost 3.90% for October 2024, marking its first monthly loss in three months, partly due to reports of China urging automakers to scale back European investments amid new tariffs on Chinese EVs. The Nikkei declined by 0.50% on Thursday, ending a three-day streak of gains as Japanese markets followed Wall Street's losses, primarily driven by falling chip stocks and disappointing US tech earnings.
US stocks closed sharply lower on Thursday, with the Nasdaq leading losses after tech giants Microsoft and Meta issued disappointing earnings guidance, raising concerns over high AI costs and potential profit impacts. The S&P 500 fell 1.80%, the Nasdaq 100 dropped 2.40%, experiencing its worst day in over a month, and the Dow lost 378 points.
Brent crude oil futures climbed to around $72.61 per barrel, extending over a 2% gain from the previous session, boosted by an unexpected drop in US stockpiles. EIA data showed that US crude inventories fell by 0.5 million barrels last week, defying expectations of a 2.3 million barrel increase. Gasoline and distillate inventories also decreased. Meanwhile, markets continued to monitor Middle Eastern geopolitical risks, with Israel's military chief warning of a strong response to any further missile attacks from Iran.
