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Nasdaq, Dow Jones and S&P 500 fall; Super Micro, Apple, Microsoft, Meta, Trump Media, Uber, more movers; PCE inflation closer to Fed target

Vaseline October 31, 2024

The stock market sell-off worsens on Thursday.

The Dow Jones Industrial Average is down 0.7%, while the S&P 500 is down 1.3% and the tech-heavy Nasdaq Composite is down 2.1%. Gains were milder at the start of trading.

Technology leads the way down. Investors had piled into these stocks, which on Thursday rose more than 23% for the year as software companies continue to make money from their artificial intelligence offerings and chipmakers see growing demand for their AI chips. Now some take their profits by selling.

Not helping is the fact that 10-year Treasury yields have risen to 4.3%, almost a full percentage point from about a month ago, as markets view the recent strength of the economy as sufficient to keep some inflation and high interest rates within to keep the limits. the photo.

The problem for technology is that higher yields on long-term bonds make future profits less valuable, and many technology companies are valued based on the fact that a large portion of their profits will come many years into the future.

Although Microsoft and Meta Platforms reported better-than-expected earnings, the picture wasn’t enough to lift the shares, both of which were deep in the red on Thursday. The two companies together have a market value of around $4.5 trillion, and therefore weigh heavily on the Nasdaq.