On Thursday, Meta became the latest tech company to release a projection that fell short of investors’ expectations, sending the Nasdaq Composite further into correction territory.
The tech-heavy index finished at 12,595.61, down 1.76% and below its 200-day moving average. The Dow Jones Industrial Average fell 251.63 points, or 0.76%, to 32,784.30, while the S&P 500 fell 1.18% to close the session at 4,137.23. The S&P 500 entered corrective territory during Thursday’s session at its lowest point of the day, and it concluded the day about 10% below its closing high, achieved in July.
The Nasdaq Composite has now formally entered correction territory, down more than 10% from its high closing for the year in July, after falling 2.4% on Wednesday.
“Wall Street isn’t impressed with big-tech earnings thus far, and given the weaker prognosis for the US economy, the surviving ones, Amazon and Apple, will probably struggle,” stated Ed Moya, senior market analyst at Oanda. “Great demand in today’s seven-year auction demonstrates that investors are nevertheless mindful of all the geopolitical dangers that are still present.”
The third-quarter results for Facebook parent company Meta were better than expected, but the firm reported some downturn in the advertising market thus far this quarter. Concerns over cost control were also raised by the company’s Reality Labs subsidiary, which lost $3.7 billion over the course of the quarter. Meta’s stock fell 3.7%.