With another round of poor earnings, the stock market fell to its lowest level in May. Amazon rose in late trading as sales exceeded expectations.
The S&P 500 fell 1.2%, coming closer to a "correction," with the index down nearly 10% from its July peak. The Nasdaq 100 dropped roughly 2% when Meta Platforms fell, dashed hopes for a long-term advertising comeback. Nvidia and Microsoft both lost at least 3.4% of their value. Treasuries yields fell as economic data supported expectations of a Fed pause.
Traders also kept a careful eye on geopolitical developments, such as Israel's military stating it assassinated Hamas's deputy chief of intelligence, who it accused of aiding in the planning of the Oct. 7 assaults. The army also conducted a modest ground operation into northern Gaza overnight. Crude has fallen below $84 per barrel. The euro fell as the European Central Bank maintained interest rates unchanged, as predicted.
After reporting earnings, the so-called Magnificent Seven technology businesses lost nearly $200 billion in value. Aside from Meta, Alphabet (the parent company of Google) and Tesla have all declined, with Microsoft the lone bright light.