The downside of high expectations thumped Wall Street on Thursday, and Microsoft and Meta Platforms dragged U.S. stock indexes lower despite delivering strong profits for the summer.
The S&P 500 sank 1.9% for its worst day in eight weeks and fell further from its record set earlier this month. The Dow Jones industrial average dropped 378 points, or 0.9%, while the Nasdaq composite tumbled 2.8% for a second straight loss after setting its latest all-time high.
Microsoft reported bigger profit growth for the latest quarter than analysts expected. Its revenue also topped forecasts, but its stock nevertheless sank 6% as investors and analysts scoured for possible disappointments.
The parent company of Facebook, meanwhile, likewise served up a better-than-expected profit report. As with Microsoft, that wasn’t enough to boost its stock. Meta Platforms’ shares fell 4.1%.
Amazon and Apple also helped drag the market lower, with Amazon falling 3.4% and Apple dropping 2% before they released their profit reports after trading ended for the day.
The lone remaining member, Nvidia, will report its results later this earnings season, and its 4.8% drop was Thursday’s heaviest weight on the market after Microsoft.
Still, Thursday wasn’t a complete washout thanks in part to cruise ships and cigarettes.
Norwegian Cruise Line Holding steamed 6.3% higher after delivering stronger profit for the latest quarter than analysts expected.
Altria Group rose 7.8% for another one of the S&P 500’s bigger gains after beating analysts’ profit expectations. ConocoPhillips jumped 6.4%.
All told, the S&P 500 fell 108.22 points to 5,705.45. The Dow dropped 378.08 to 41,736.46, and the Nasdaq composite tumbled 512.78 to 18,095.15.
In the bond market, Treasury yields edged lower following a mixed set of reports on the U.S. economy. The yield on the 10-year Treasury fell to 4.27% from 4.30% late Wednesday. That’s still up sharply from the roughly 3.60% level it was at in the middle of last month.
— Associated Press