Stock market today: Nasdaq, S&P 500 sink as Meta, Microsoft revive Big Tech's AI spending worries

Published On Oct 31, 2024, 9:31 AM

Today, U.S. stock markets fell, with the Nasdaq dropping 0.7% and the S&P 500 also down by 0.7%. This downturn was influenced by worrying earnings reports from Meta and Microsoft, which indicated increased costs related to AI initiatives. As investors weigh these results, there is a general concern about the future spending and profitability of Big Tech companies amidst these rising expenses.

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Stock Forecasts

METAView META chart on TradingView

Negative

The concerns around AI spending and profitability, highlighted by Meta's and Microsoft's earnings, might continue to weigh down Big Tech stocks. Investors may be cautious in the near term, which could lead to further volatility in these stocks.

MSFTView MSFT chart on TradingView

Negative

While Microsoft reported strong cloud revenue, the overall high costs of AI development raise concerns about future profitability. The stock could face downward pressure as investors reassess growth prospects in light of these costs.

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