Nasdaq sees biggest drop in 2 months, Dow Jones sheds 380 points

US stock indices fell sharply at the close of trading on Thursday as investors absorbed corporate earnings released so far and anticipated additional economic data and financial reports from major players in the technology sector.

The Dow Jones Industrial Average declined 0.90%, or 378 points, to close at 41,763 points.

The S&P 500 slid 1.85%, or 108 points, to 5,705, while the Nasdaq Composite slumped 2.75%, or 512 points, to end the day at 18,095 points. Both indices recorded the highest daily drops since Sept. 3.

While the three indices headed for weekly losses, they posted monthly losses in October. Dow Jones fell 1.3%, S&P 500 lost 1%, and Nasdaq edged down 0.5%.

As for the European indices, STOXX Europe 600 ended 1.25%, to 505.03 points, posting a monthly loss of 3.4% - the worst since October 2023.

Meanwhile, FTSE inched down 0.60% to 8,110 points. Germany’s DAX tumbled 1.05%, to close at 19,058 points. France’s CAC 40 also fell 1.05% to 7,350 points.

In Japan, the Nikkei 225 edged down 0.50%, or 196 points, to 39,081 points. Similarly, the broader TOPIX finished 0.30% lower at 2,695 points. Both indices snapped three-session gains.

In the oil market, Brent crude futures for December delivery—which expired today—rose by 0.85% or 61 cents to settle at $73.16 a barrel, while January contracts—the more actively traded—closed at $72.81.

Meanwhile, US WTI crude futures for December delivery increased by 0.95%, or 65 cents, to $69.26 a barrel, with both benchmarks recording monthly gains of around 2% each.

As for gold, December futures for the yellow metal dropped by 1.80%, or $51.50, to $2,749.30 per ounce. This marked the steepest daily decline in dollar value and percentage since late July, although it gained 3.4% in October.

Data released on Thursday showed the US Personal Consumption Expenditures (PCE) Price Index rose by 2.1% year-on-year in September, after a 2.3% jump in August.