Nasdaq Slips as Meta and Microsoft Earnings Weigh on the Index
Published on October 31, 2025
Published on October 31, 2025
Tech stocks fell on Thursday, though Amazon and Apple shares climbed in after-hours trading following their latest earnings releases.
Earlier in the session, disappointing post-earnings reactions from Meta Platforms and Microsoft weighed on the broader market, pushing the Nasdaq Composite down 1.6%.
Meta’s stock tumbled 11% after the company announced plans to boost spending to stay competitive in the artificial intelligence race. The news also sent yields on Meta’s bonds higher as it finalized pricing for a $30 billion jumbo debt sale.
Meanwhile, the dollar and U.S. Treasury yields extended Wednesday’s advance. Traders scaled back expectations for a December rate cut after Federal Reserve Chair Jerome Powell signaled that such a move was far from certain.
Attention also turned to U.S.-China relations following the first in-person meeting between Presidents Trump and Xi Jinping in six years. The U.S. said it would reduce tariffs on Chinese goods, while Beijing agreed to ease restrictions on rare-earth exports and tighten control over chemicals used to produce fentanyl.
Markets had rallied earlier in the week in anticipation of a major trade breakthrough, but the actual agreements were modest. Analysts noted that China appears likely to maintain most of its rare-earth export curbs, while businesses brace for continued volatility in bilateral trade.
In market performance:
U.S. equities closed near session lows, with the S&P 500 down 1% and the Dow Jones Industrial Average off 0.2%.
Amazon shares surged 12% after hours on strong revenue growth driven by its cloud division, while Apple rose 2% after forecasting a strong December quarter.
The combined market cap of the “Magnificent Seven” reached 38% of the S&P 500, the highest share since at least 2020.
The yen weakened after the Bank of Japan held rates steady. Japan’s Nikkei 225 hit a record high and logged its biggest monthly gain in nearly five years.
Stocks fell in China and across Europe, where the European Central Bank also kept interest rates unchanged.
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