Tech Stocks Hit as Meta Fail to Inspire – US Market Wrap

A chipmaker selloff dragged down stocks, as traders sifted through corporate earnings and economic data. In the late hours, Meta Platforms fell, while Microsoft rose following earnings.

A $300 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) extended losses after regular trading ended, as Meta fell 3% after its spending guidance failed to impress investors. That’s even after a sales boost. Microsoft gained 1% as its cloud computing business and Office software drove higher-than-expected quarterly revenue growth.

Equities struggled to gain traction Wednesday, with a closely watched index of semiconductor companies falling 3.4%. The decision was influenced by a slide at Nvidia and disappointing results at Advanced Micro Devices. Alphabet gained 2.9% on higher-than-expected sales.

Traders reduced their bets on policy easing after data showed that the US economy expanded at a strong pace in the third quarter, as household purchases increased ahead of the election and the federal government increased defence spending. A measure of underlying inflation increased 2.2%, roughly in line with the Federal Reserve’s target.

The S&P 500 index fell 0.3%. The Nasdaq 100 declined 0.8%. The Dow Jones Industrial Average declined 0.2%. Homebuilders rallied as pending home sales in the United States rose to their highest level since 2020. Visa rose on strong results. Eli Lilly was hit after lowering its guidance due to slow sales of its weight-loss drug.

Treasury two-year yields, which are more sensitive to upcoming Fed moves, increased by seven basis points to 4.16%.

UK bonds fell as investors baulked at the new government’s plan for historically high debt issuance to fund investment and stimulate the economy, which could result in higher long-term interest rates. Oil rebounded.