Stocks took a nosedive on Thursday as Wall Street digested disappointing earnings from tech giants. The S&P 500 fell 1.4%, the Nasdaq Composite dropped 2.3%, and the Dow Jones Industrial Average slipped by 186 points, or 0.4%.

Microsoft's shares plummeted 5.5% after its revenue forecast missed the mark, overshadowing an earnings beat. Meta Platforms also took a hit, down 4% after failing to meet Wall Street’s user growth expectations and warning of hefty capital expenditure increases in 2025. Still, credit where it’s due—Meta did outpace revenue and earnings estimates for Q3.

Ross Mayfield, an investment strategist at Baird Private Wealth Management, put it simply: “The hype around AI isn’t cutting it anymore. These companies are tied to promising long-term themes but aren’t delivering the growth investors expect.”

Earnings week has been a mixed bag. Alphabet saw shares rise nearly 3% on Wednesday after reporting strong revenue growth, while chipmaker AMD tumbled over 10% due to disappointing guidance for the fourth quarter. The earnings rollercoaster continues with Apple and Amazon’s reports on deck.

On the economic front, the personal consumption expenditures (PCE) price index revealed a 2.1% year-over-year inflation rise in September, right in line with expectations and inching closer to the Fed’s 2% target. This data, along with the upcoming payroll and unemployment reports, will significantly shape the Fed’s interest rate strategy at its Nov. 7 meeting.

Today, major indices opened lower. The Dow dipped 0.6%, the S&P 500 fell 1%, and the tech-heavy Nasdaq composite slid 1.6% in morning trading. In the bond market, the 10-year Treasury yield ticked up to 4.28%, on track for its seventh consecutive weekly gain, while oil prices hovered just above this week’s lows at around $69 per barrel.

Finally, the Commerce Department reported that the core PCE price index rose by 0.3% for September, with an annual increase of 2.7%, slightly above the 2.6% estimate. This core index is what the Fed closely monitors when assessing inflation.

As we wrap up October, a month filled with market turbulence ahead of the U.S. Presidential election on Nov. 5, the Dow is down 0.9% for the month, with the S&P 500 and Nasdaq also feeling the pinch. 

​