Stock futures fell Thursday with the Nasdaq Composite set to fall deeper into correction territory as Meta became the latest tech company to report quarterly results that did not quite live up to investors’ expectations. Futures on the Nasdaq-100, which contains the largest non-financial stocks in the Nasdaq Composite, dropped 0.9%. S&P 500 futures fell about 0.7% a day after the benchmark posted its lowest close since May. Futures tied to the Dow Jones Industrial Average lost 123 points, or 0.3%. Following a 2.4% decline on Wednesday, the Nasdaq Composite is now officially in correction territory, down more than 10% from its high close for the year in July. Facebook-parent Meta beat on top and bottom lines in the third quarter, but the company noted that it was seeing some advertising softness so far this quarter. Investors also worried about cost control with the company’s Reality Labs division losing $3.7 billion in the prior quarter. Meta shares slid 3%. The moves follow a brutal trading session Wednesday, which was partly driven by a 9.5% decline in Google-parent Alphabet. Alphabet’s Class-A shares suffered their worst day since March 2020 on Wednesday after the company reported revenue in its Google cloud unit that came in below analyst estimates. The Nasdaq recorded its worst day since Feb. 21. The correction since the summer is being driven by a surge in bond yields with the 10-year Treasury yield at one point this month crossing 5%. The 10-year yield was approaching that level again Thursday morning, trading at 4.97%. Futures came off their lows even as third-quarter gross domestic product came in much stronger than expected. U.S. GDP grew at a 4.9% annualized clip from July through September, while economists polled by Dow Jones forecast 4.7%. The S&P 500 fell 1.4% on Wednesday and ended the day below the 4,200 level that’s widely watched by chart analysts and investors. That marked the first time the broader index closed below this threshold since May. Major earnings are also on the horizon, with Amazon scheduled to post results after the close. The 10-year U.S. Treasury yield hovered near the key 5% level on Thursday as investors assessed a stronger-than-expected GDP report. The yield on the 10-year Treasury fell about 2 basis points to 4.934%. The 2-year Treasury yield was at 5.085% after falling by 3 basis points. Asia-Pacific markets saw a broad sell-off, with Australia shares closing at a low not seen in over a year, while mainland China stocks bucked the broader trend to end Thursday higher. South Korea’s Kospi index slipped 2.71% to close 2,299.08, its lowest level since Jan. 6, while the Kosdaq index shed 3.5% to reach 743.85, its lowest since Jan. 31. Japan’s Nikkei 225 fell 2.14% to end at 30,601.78 and the Topix index dropped 1.34% to finish at 2,224.25. In Australia, the S&P/ASX 200 closed 0.61% down at 6,812.30, hitting its lowest point since late October, 2022. Hong Kong’s Hang Seng index dipped 0.11% in the final minutes of trading, while China’s benchmark CSI 300 index was the only one in positive territory, climbing 0.28% to 3,514.14. Oil prices fell on Thursday after a rise in U.S. crude stockpiles and a climb in the dollar index, giving up some ground gained a day earlier when prices jumped on fears of a broader conflict in the Middle East. Brent crude futures declined by $1.21, or 1.3%, to $88.92 a barrel. U.S. West Texas Intermediate crude futures eased $1.28, or 1.5%, to $84.11 a barrel. Gold climbed back towards last week’s five-month peak on Thursday, undeterred by a stronger U.S. dollar and bond yields, as investors looked to the safe-haven asset amid the Middle-East conflict. Spot gold rose 0.4% to $1,986.99 per ounce, trading just shy of its highest level since May 16 hit on Friday. U.S. gold futures rose 0.1% to $1,997.30.
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