Nasdaq tumbles 1.7% Thursday, descending further into correction territory: Live updates

Meta's latest earnings beat overshadowed by fourth quarter ad softness. Here's what the pros say
Meta's latest earnings beat overshadowed by 4Q ad softness. What the pros say

The Nasdaq Composite dropped deeper into correction territory on Thursday as Meta became the latest tech company to offer a forecast that didn't quite live up to investors' expectations.

The tech-heavy index lost 1.76%, closing below its 200-day moving average and ending at 12,595.61. The S&P 500 dipped 1.18% to finish the session at 4,137.23, while the Dow Jones Industrial Average slipped 251.63 points, or 0.76% to 32,784.30. During Thursday's session, the S&P 500 dipped into correction territory at its low of the day — and it ended the session nearly 10% off from its closing high, notched in July.

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.

"Wall Street hasn't been impressed with big-tech earnings so far and the remaining ones, Amazon and Apple will likely struggle given the weakening outlook for the US economy," said Ed Moya, senior market analyst at Oanda. "Strong demand from today's seven-year auction shows you investors are still concerned with all the geopolitical risks that remain on the table."

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, which shed $3.7 billion throughout the quarter. Meta shares slid 3.7%.

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.

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Nasdaq YTD

The Nasdaq on Wednesday 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 slipped 10 basis points to 4.84% Thursday, but that failed to stem the market sell-off.

The market didn't get any help from the third-quarter gross domestic product report, which 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%.

Major earnings are also on the horizon, with Amazon scheduled to post results after the close.

Stocks close lower

Stocks closed lower on Thursday, with another decline in the Nasdaq Composite pushing the index further into correction territory.

The tech-heavy Nasdaq pulled back 1.76% to close at 12,595.61, while the S&P 500 slipped 1.18% to 4,137.23. The Dow Jones Industrial Average fell 251.63 points, or 0.76%, to finish the session at 32,784.30.

— Brian Evans

Advancers and decliners at NYSE about even

The S&P 500, Dow Jones Industrial Average and Nasdaq Composite fell sharply Thursday, but a look under the surface points to a more resilient market.

The number of advancing stocks at the New York Stock Exchange was about even to that of those names that advanced. Overall, about 1,300 NYSE-listed stocks were higher, while around 1,400 declined.

— Fred Imbert

Information technology and communication services stocks weigh on S&P 500

Information technology and communication services led the S&P 500 lower on Thursday.

Both sectors of the broad index slid more than 2%, making them the worst performers of the 11 sectors. The index as a whole, meanwhile, dropped 1.2%.

Comcast and Meta contributed to communication services' slide with drops of more than 6% and 4%, respectively. Facebook parent Meta reported earnings on Wednesday, while Comcast posted its quarterly report Thursday morning. The sector is on track to end the week more than 6% lower.

Meanwhile, Western Digital was the worst performer among information technology names, shedding 11% after Nikkei reported that its merger talks with Kioxia were ending. Arista Networks followed with an 8% loss.

Despite the leg down, three of the 11 sectors were on pace for gains on Thursday. Real estate led the way with an advance of 1.8%. Utilities and materials followed, with both trading 0.8% higher.

— Alex Harring

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading.

Bunge — Shares of the global crop trader and processor popped 5.2% after the company lifted its 2023 outlook and reported better-than-expected profit for the third quarter. Bunge's earnings were lower year-on-year, however.

Comcast — Comcast shares fell 6.3% after the telecom giant reported a loss in high-speed broadband subscribers. Advertising revenue from NBCUniversal was also weak.

UPS — The shipping company saw shares decline 5.3% after releasing its third-quarter earnings report, which showed disappointing revenue. Full-year revenue guidance was also slightly below expectations.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

Read the full list here.

— Brian Evans

These are Thursday's biggest underperformers in the tech-heavy Nasdaq

The tech-heavy Nasdaq Composite and concentrated Nasdaq-100 dropped nearly 2% on Thursday as megacap technology and communication services stocks sold off.

Align Technology was the biggest laggard on the index, cratering 25% on the back of disappointing earnings. Meta Platforms sank 4% as investors weighed cautious advertising commentary.

The Trade Desk and Comcast dropped 8.7% and 6.6%, respectively, while Lucid Group