US stocks dip as Microsoft, Meta earnings disappoint investors

U.S. stocks declined on Thursday, with the S&P 500 down 0.8%, the Nasdaq off by 1.3%, and the Dow Jones dropping around 190 points as investors reacted to disappointing megacap earnings and awaited more results.

US stocks dip as Microsoft, Meta earnings disappoint investors

Microsoft shares fell roughly 5% after it announced slower growth projections despite exceeding earnings and revenue expectations. Meta’s stock dropped around 1.1% following weaker-than-expected user growth and a "significant acceleration" in AI-related infrastructure costs. Apple and Amazon are set to report earnings later today, with Apple down 0.8% and Amazon slipping about 1.5% ahead of the results.

Economic data meets Forecasts; Fed outlooks remain unchanged

Data largely aligned with forecasts on the economic front, leaving Federal Reserve outlooks unchanged. PCE prices rose as expected, though the annual core rate held steady, while personal spending increased by a solid 0.5%, and initial jobless claims unexpectedly fell to their lowest level since May.