Big Tech Earnings Drag Down Stocks

Disappointing quarterly results from big technology companies pushed stock indexes lower Thursday, sending the S&P 500 to its first monthly loss since April.

The S&P 500 fell 1.9% Thursday, snapping a 29-day streak without a daily loss of 1% or more, the longest such run in three years. The broad stock index shed 1% in October.

The tech-heavy Nasdaq Composite had its worst day in nearly two months, dropping 2.8% Thursday to end October 0.5% lower. The Dow Jones Industrial Average declined 0.9%, or 378 points. The blue-chip index finished the month down 1.3%.

The mammoth technology companies that have come to dominate the market and driven indexes to record after record this year have met a tougher crowd this earning season. Investors’ displeasure with their quarterly reports has had outsize influence on stock indexes.

Though Microsoft and Facebook-owner Meta Platforms reported better-than-expected results after trading hours on Wednesday, investors found fault on Thursday.

Microsoft forecast slower growth in its cloud business and fell 6.1%. Meta said it expects “significant” growth in capital expenditures next year and sank 4.1%.

Read more here from The Wall Street Journal.