As Meta became the latest tech company to release quarterly earnings that fell short of investors’ expectations, the Nasdaq Composite plunged on Thursday, delving even farther into correction territory.
It was the first time since March that the tech-heavy index fell below its 200-day moving average, losing 0.9%. S&P 500 declined by 0.4%. 52 points, or 0.1%, were added to the Dow Jones Industrial Average. With a roughly 4% increase, IBM was the best performer among the 30 stocks in the Dow.
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.
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. Shares of Meta fell 1.5%.
The actions come after a bruising trading session on Wednesday, among which Alphabet, the parent company of Google, fell 9.5%. On Wednesday, Alphabet’s Class-A shares saw their worst day since March 2020 when the firm revealed Google Cloud unit revenue that was lower than expected by analysts.