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Prices rose in line with expectations
The U.S. personal consumption expenditure index rose 0.2% in September on a monthly and seasonally adjusted basis, the Commerce Department said. The annual inflation rate was 2.1%. Both figures were in line with Dow Jones estimates. Core inflation, excluding food and energy prices, stood at 2.7%.

Big Tech is dragging the markets down
The major US indices fell on Thursday, weighed down by losses in Big Tech stocks. All three indexes fell this month. Europas Stoxx 600 According to LSEG data, the index fell 1.2% to end October 3.4% lower, marking the worst monthly performance in a year. In addition, inflation in the eurozone rose to 2% in October, more than expected.

Apple and Amazon exceeded expectations
From Apple Fiscal fourth-quarter earnings and revenue exceeded LSEG consensus estimates. The Cupertino-based company’s iPhone sales grew 6%. In the meantime, Amazon also exceeded Wall Street expectations for third-quarter earnings and revenue. Although the company’s cloud division missed revenue expectations, it is growing faster than the same period last year.

New contract offer for Boeing employees
Boeing and the machinists’ union have reached a new contract offer that could end a seven-week strike involving more than 32,000 machinists. The new proposal increases wage increases and offers the possibility of a ratification bonus. The vote is scheduled for Monday and the union has urged its members to approve the contract.

(PRO) Lowest cash level in mutual funds
The US presidential elections are less than a week away. Typically, this uncertainty predicts volatility in the markets. But according to Bank of America, cash levels in mutual funds are at their lowest levels ever, suggesting fund managers are not afraid to deploy cash in the markets. CNBC Pro’s Jesse Pound explains what that means for the markets.

Expectations for Big Tech are so high that, ironically, exceeding expectations is no longer enough.

To take Microsoftfor one. The company handily beat Wall Street estimates — quarterly revenue was $1 billion more than expected and net income rose 11% from the year-earlier quarter — but its shares fell 6.1% on Thursday. A conservative forecast for the quarter ending in December disappointed investors and gave Microsoft its worst day since October 26, 2022.

The picture is much the same with shares of Meta And Apple. Even Alphabet The shares, which rose nearly 3% after the earnings release on Wednesday, fell 1.9% on Thursday.

“I think we’re getting to the point where AI enthusiasm and potential aren’t enough. These companies … aren’t quite delivering the growth that’s priced in,” said Ross Mayfield, investment strategist at Baird Private Wealth Management.

The magnitude of the losses at these Big Tech companies has dragged down the economy Nasdaq Compositewhich fell by 2.76%. The S&P500heavily weighted toward these mega-cap companies, plummeted 1.86%. Both indices had their worst day since September 3 Dow Jones Industrial Average lost 0.9%. All indexes closed October in the red.

However, some analysts are still bullish on Big Tech’s catalyst for stock growth.

“The continued growth of AI-related investments reported by all three tech giants supports the positive structural trend,” said Solita Marcelli, UBS The CIO of Global Wealth Management for America writes this in a note. Marcelli was referring to Microsoft, Alphabet and Meta.

Likewise, By Piper Sandler Chief Market Technician Craig Johnson wrote to clients that “the overall technical evidence remains constructive and the primary trend of the major averages is higher” even if there is near-term pullback or modest profit-taking.

Therein lies the outsized burden on Big Tech. Investors and analysts don’t just expect these companies to exceed expectations. They also want mega-cap companies to drive the markets, which is more dependent on growth prospects than profits.

Essentially, more than any other sector, Big Tech must simultaneously meet expectations for both the past and the future.

— CNBC’s Jordan Novet, Jesse Pound, Alex Harring, Hakyung Kim and Brian Evans contributed to this report.