Corporate business results increase the pain of US stocks, and Nasdaq loses 1.76%
US stocks continued to decline in trading on Thursday, due to the disappointing business results of technology companies, the most recent of which was what Meta announced about a future vision for its business, which did not live up to the aspirations of investors.
For the second day in a row, stocks fell strongly, as the Dow Jones Industrial Average lost more than three-quarters of a percentage point, the S&P 500 index fell by 1.18%, while the loss in the Nasdaq index reached 1.76%.
The S&P 500 and Nasdaq indexes ended the day down about 10%, compared to the highest close recorded this year, which they reached in July.
Meta Company said on Wednesday evening that its quarterly profits during the period ending at the end of September were more than double the profits of the same period last year, stressing that it expects a volatile advertising market, in addition to facing lawsuits that accuse it of profiting from “children’s pain.”
“Wall Street has not been affected by big tech profits so far, and the remaining companies, such as Amazon and Apple, are likely to suffer in light of the weak outlook for the US economy,” said Ed Moya, senior market analyst at OANDA. “The market today shows that investors remain concerned about all the geopolitical risks that remain on the table,” he added.
On the other side of the Atlantic, European stocks trimmed their early losses at the close on Thursday, after the European Central Bank fixed interest rates as expected, while pessimistic reports from institutions such as Standard Chartered affected the index.
The European STOXX 600 index closed 0.5% lower. The automobile manufacturing sector led the sectoral losses.
The European Central Bank kept interest rates unchanged at 4%, ending an unprecedented series of ten consecutive rate hikes.
Relatedly, oil prices fell today, Thursday, by more than two dollars at settlement, with fears receding about the expansion of the conflict in the Middle East, at the same time that American demand showed signs of weakness.
Brent crude futures prices lost $2.20, representing 2.44%, to $87.93 per barrel upon settlement, while US West Texas Intermediate crude futures fell $2.18, or 2.55%, to $83.21 per barrel. Brent rose about 2% yesterday, Wednesday, upon settlement.
Oil prices have recently received a boost from fears of the impact of the expanding conflict between Israel and the Palestinian resistance on global crude oil supplies, a conflict that may put Iran and its allies in the region in trouble, according to Reuters.
2023-10-26 22:08:49
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