Wall St ends lower as Meta, Microsoft highlight AI costs
Thu October 31, 2024 4:00 PM
The Magnificent Seven did not deliver as hoped when both Microsoft and Meta announced that AI expenses were growing into basically a blank check and this brought into new doubt the profit potential of this new market that has sustained the megacap rally all year. This news also brought down Amazon, Apple and Google. Investors like to know what expenses will be so they can calculate profits and today they found out that these megacaps don’t know. Thus, all the indexes came way down, all taking substantial 3-digit hits. PCE came in very close to forecast which continues to lock in the bets for a ¼ point cut in November. Volatility is expected to continue in the next few weeks as Q3 continues and the election results unravel. Per the CBOE, volume came in at 13.3 billion, considerably above the 4-week average.
DJ: 42,141.54 -91.51 NAS: 18,607.93 -104.82 S&P: 5,813.67 -19.25 10/30
DJ: 41,763.46 -378.08 NAS: 18,095.15 -512.78 S&P: 5,705.45 -108.22 10/31
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