Stocks fell sharply on Thursday as Wall Street reacted to disappointing quarterly results from major tech companies and awaited further earnings announcements. The S&P 500 declined 1.86% to 5,705.45, marking its largest one-day drop since early September. The Nasdaq Composite slipped 2.76% to 18,095.15, and the Dow Jones Industrial Average lost 378.08 points, or 0.9%, closing at 41,763.46. Both the S&P 500 and Nasdaq are on track for their biggest weekly declines since early September, impacted by concerns that tech sector growth may not meet elevated expectations.

Microsoft shares fell 6% after it issued cautious revenue guidance, overshadowing positive quarterly earnings. Similarly, Meta Platforms dropped more than 4% due to weaker-than-expected user growth and a projected increase in capital expenditures in 2025. Despite strong revenue growth, Alphabet’s earnings reports were also met with mixed reactions, as chipmaker AMD fell over 10% on disappointing guidance for the upcoming quarter.

Adding to market jitters, the latest personal consumption expenditures (PCE) price index showed inflation at 2.1% year-over-year for September, aligning with expectations and nearing the Federal Reserve’s 2% target. This PCE reading, alongside Friday’s payroll and unemployment data, will play a key role in informing the Fed’s upcoming interest rate decision on Nov. 7.

October concluded with modest losses across major indexes amid election-related uncertainty. The S&P 500 declined 1% for the month, and the Nasdaq lost 0.5%, while the Dow Jones slid 1.3%. Additionally, Treasury yields rose, as did oil prices due to ongoing Middle East tensions, while gold slightly retreated following its recent highs.