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Stocks topple with Meta, Microsoft; dollar dips after United States data

World stock indexes dropped on Thursday, with the Nasdaq ending more than 2% lower after Meta Platforms and Microsoft alerted of rising expenses for artificial intelligence, while the dollar weakened somewhat after U.S. information did little to suggest a modification to Federal Reserve policy.

The profits reports contributed to issues among investors that the pay-off for heavy costs on AI may take longer than many had hoped.

Shares of Facebook owner Meta were down 4.1% while Microsoft was 6% lower, with both weighing on the Nasdaq and S&P 500.

Much of the adjustment in the market is the forward expectations, stated Howard Chan, president of Kurv Investment Management in San Francisco.

However there are a lot of reasons to think that great earnings will continue, he said. We still hold the thesis that infrastructure around AI will still do well.

After the closing bell, shares of Amazon.com were up 4.5% after it published third-quarter earnings and sales that beat Wall Street estimates, while Apple shares reduced 2%. following its outlook.

Amazon ended the regular session down 3.3% while Apple ended. down 1.8%.

Early on Thursday, information showed U.S. customer spending. increased somewhat more than expected in September, putting the. economy on a greater development trajectory heading into the final. 3 months of the year.

Another U.S. report revealed the employment expense index (ECI),. the broadest measure of labor expenses, increased 0.8% in the 3rd. quarter. That was the smallest gain considering that the 2nd quarter of. 2021 and followed an unrevised 0.9% boost in the 2nd. quarter.

The dollar also came under pressure versus the yen after. the Bank of Japan took a less dovish tone than anticipated, while. the euro was more powerful after data revealed the bloc's inflation. accelerated more than anticipated in October, reinforcing the case. for care in European Reserve bank rate of interest cuts.

The dollar index, which measures the greenback. against a basket of currencies, fell 0.2% to 103.88, with the. euro last 0.04% greater against the dollar at $1.0859. Against the Japanese yen, the dollar was down 0.8% at. 152.18 yen.

Traders see a 25 basis point cut at the Fed's Nov. 6-7. meeting as near certain, but only a 70% possibility of a 25 basis. point reduction at both its November and December meetings,. according to the CME Group's FedWatch Tool.

Friday's U.S. tasks report for October will be carefully. viewed, in addition to the U.S. presidential election on Tuesday.

Opinion polls still are putting Republican politician Donald Trump and. Democratic Vice President Kamala Harris neck and neck.

The Dow Jones Industrial Average fell 378.08 points,. or 0.90%, to 41,763.46, the S&P 500 fell 108.22 points,. or 1.86%, to 5,705.45 and the Nasdaq Composite fell. 512.78 points, or 2.76%, to 18,095.15.

For the month, the S&P 500 fell 0.99%, the Nasdaq declined. 0.52%, and the Dow fell 1.34%. Both the Dow and S&P snapped a. five-month streak of gains.

MSCI's gauge of stocks around the world fell. 12.64 points, or 1.50%, to 832.30. The index was down 2.3% for. the month of October, also breaking a five-month streak of. boosts.

The STOXX 600 index ended 1.2% lower.

U.S. Treasury yields increased after the U.S. economic information.

Benchmark 10-year yields were last up 1.8 basis. points at 4.282%. They reached an almost four-month high of. 4.339% on Tuesday.

In cryptocurrencies, bitcoin, the world's biggest. cryptocurrency by market cap, was 3.2% lower at $70,458, about. 4% shy of its record high from March.

Gold retreated after striking a record high, while safe-haven. need assisted the precious metal log its 4th straight month-to-month. gain.

Area gold was down 1.6% at $2,740.45 per ounce,. after hitting a record high of $2,790.15 earlier in the session. Rates have firmed around 4% for the month.

Oil rates extended gains after settlement, increasing on a. report that Iran is preparing to assault Israel from Iraqi. area in the coming days.

WTI crude oil futures leapt $1.81 to $70.42 at 3:00 p.m. EDT, after settlement and Brent futures for January delivery. jumped by $1.82 to $73.98. U.S. crude increased 1.33% to. $ 69.52 a barrel and Brent increased to $73.23 per barrel, up. 0.94% on the day.

(source: Reuters)