FX.co ★ US Stocks Fall, Earnings and Fed Weigh

On Thursday, the S&P 500 declined by 0.5%, the Nasdaq dropped 1%, and the Dow Jones decreased approximately 70 points. This downturn was primarily driven by unsatisfactory performance reports from major tech firms. In the meantime, investors continued to assess comments from Federal Reserve Chair Powell, who indicated that a rate cut in December is not guaranteed. Furthermore, a meeting between Presidents Trump and Xi concluded with the U.S. agreeing to reduce tariffs on Chinese imports from 57% to 47%. In return, China committed to intensifying efforts to halt fentanyl distribution and to boost purchases of U.S. soybeans. Meta saw a significant drop of over 12% following a $15.93 billion one-time charge linked to the “One Big Beautiful Bill” Act. Microsoft shares declined by more than 1.5% after the company reported a $3.1 billion quarterly earnings reduction due to its OpenAI investment. Conversely, Alphabet experienced a 2.6% increase following better-than-expected earnings, and Eli Lilly's shares rose by over 1% after the company raised its full-year revenue outlook. Both Apple and Amazon are scheduled to release their earnings reports today.