{"id":48322,"date":"2024-10-31T21:28:43","date_gmt":"2024-10-31T21:28:43","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/"},"modified":"2024-10-31T21:28:43","modified_gmt":"2024-10-31T21:28:43","slug":"market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/","title":{"rendered":"Market Recap: Wall Street Tumbles as Tech Giants Highlight AI Costs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Major_Indexes_Close_Lower_Amid_Tech_Sector_Concerns\" >Major Indexes Close Lower Amid Tech Sector Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Tech_Sector_Leads_Market_Decline\" >Tech Sector Leads Market Decline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Economic_Data_and_Fed_Watch\" >Economic Data and Fed Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Notable_Stock_Movements\" >Notable Stock Movements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Looking_Ahead_Upcoming_Market_Events\" >Looking Ahead: Upcoming Market Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-tumbles-as-tech-giants-highlight-ai-costs\/48322\/#Why_Was_the_Market_Down_Today\" >Why Was the Market Down Today?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Close_Lower_Amid_Tech_Sector_Concerns\"><\/span>Major Indexes Close Lower Amid Tech Sector Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Thursday, October 31, 2024, Wall Street experienced a significant downturn as investors grappled with warnings from tech giants about rising artificial intelligence-related costs. The stock market recap for the day shows all major indexes closing in negative territory, with the tech-heavy Nasdaq leading the decline.<\/p>\n<p><b>As of market close:<\/b><br \/>&#8211; <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a>: 5,735.81, down 77.86 points (-1.34%)<br \/>&#8211; <a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average: 41,846.18, down 295.36 points (-0.70%)<br \/>&#8211; Nasdaq Composite: 18,223.66, down 384.27 points (-2.07%)<br \/>&#8211; Russell 2000: 2,220.48, down 12.56 points (-0.56%)<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Sector_Leads_Market_Decline\"><\/span>Tech Sector Leads Market Decline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The technology sector was at the forefront of today&#8217;s market pullback. Meta Platforms (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=META\">META<\/a>) and Microsoft (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MSFT\">MSFT<\/a>) set a cautious tone in after-hours trading on Wednesday, with their shares dropping 4% and 3.7% respectively in <a href=\"https:\/\/stockmarketwatch.com\/markets\/pre-market\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading. Both companies beat earnings estimates but warned of increasing AI-related costs and potential growth slowdowns in key areas.<\/p>\n<p>Other members of the &#8220;Magnificent Seven&#8221; megacap stocks also felt the pressure:<br \/>&#8211; Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>): Down 3.90% to $133.90<br \/>&#8211; Alphabet (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GOOGL\">GOOGL<\/a>): Down 1.1%<br \/>&#8211; Amazon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMZN\">AMZN<\/a>): Down 1.3%<br \/>&#8211; Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>): Down 0.3% ahead of its earnings report after market close<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_and_Fed_Watch\"><\/span>Economic Data and Fed Watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors were on edge ahead of key economic data releases. The Personal Consumption Expenditures (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PCE\">PCE<\/a>) index, the Federal Reserve&#8217;s preferred inflation metric, was eagerly anticipated for insights into potential interest rate adjustments in the coming months.<\/p>\n<p><b>Key economic indicators released today:<\/b><br \/>&#8211; Core PCE Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=YoY\">YoY<\/a>): 2.7%, unchanged from the previous reading<br \/>&#8211; PCE Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=YoY\">YoY<\/a>): 2.1%, down from 2.2%<br \/>&#8211; Core PCE Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MoM\">MoM<\/a>): 0.3%, up from 0.1%<br \/>&#8211; Initial Jobless Claims: 216,000, down from 227,000<\/p>\n<p>These figures suggest that inflation remains a concern, but the labor market continues to show resilience. The upcoming Federal Reserve meeting on November 7 is expected to result in another reduction in interest rates as the central bank balances growth stimulation with inflation control.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Notable_Stock_Movements\"><\/span>Notable Stock Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the overall market trend was negative, some stocks bucked the trend:<\/p>\n<p><b><a href=\"https:\/\/stockmarketwatch.com\/markets\/topstocks\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Top Stocks\">Top Gainers<\/a>:<\/b><br \/>&#8211; Peloton Interactive (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PTON\">PTON<\/a>): Up 24.65% to $8.29<br \/>&#8211; Paycom Software (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PAYC\">PAYC<\/a>): Up 21.99% to $210.14<br \/>&#8211; Nextracker (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NXT\">NXT<\/a>): Up 20.79% to $38.63<br \/>&#8211; Roblox Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=RBLX\">RBLX<\/a>): Up 19.43% to $51.52<br \/>&#8211; Carvana (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CVNA\">CVNA<\/a>): Up 19.36% to $247.44<\/p>\n<p><b>Top Losers:<\/b><br \/>&#8211; Aurora Innovation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AUR\">AUR<\/a>): Down 24.62% to $5.01<br \/>&#8211; Huntington Ingalls Industries (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=HII\">HII<\/a>): Down 22.75% to $193.51<br \/>&#8211; Roku (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=ROKU\">ROKU<\/a>): Down 20.16% to $61.89<br \/>&#8211; The Est\u00e9e Lauder Companies (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=EL\">EL<\/a>): Down 18.90% to $70.68<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead_Upcoming_Market_Events\"><\/span>Looking Ahead: Upcoming Market Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are bracing for more volatility in the coming weeks due to several factors:<\/p>\n<p>1. Ongoing earnings season with major reports still to come<br \/>2. The Federal Reserve&#8217;s November meeting and potential interest rate decision<br \/>3. Nonfarm payrolls data due on Friday, November 1<br \/>4. The approaching U.S. presidential election<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Was_the_Market_Down_Today\"><\/span>Why Was the Market Down Today?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market&#8217;s decline today can be attributed to several factors:<\/p>\n<p>1. Warnings from Meta and Microsoft about AI-related costs, dampening enthusiasm in the tech sector<br \/>2. Investor concerns about high valuations in AI-driven stocks<br \/>3. Anticipation of key economic data and its potential impact on Fed policy<br \/>4. Profit-taking after recent market highs<br \/>5. Uncertainty surrounding upcoming events like the Fed meeting and presidential election<\/p>\n<p>As we move into November, market participants will be closely watching these developments and their potential impact on various sectors. The VIX, Wall Street&#8217;s &#8220;fear gauge,&#8221; rose to a three-week high, indicating increased investor anxiety.<\/p>\n<p>In conclusion, <a href=\"https:\/\/stockmarketwatch.com\/live\/stock-market-today\" data-internallinksmanager029f6b8e52c=\"6\" title=\"Stock Market Today\">today&#8217;s stock market<\/a> recap highlights the challenges facing even the most robust sectors of the market. As AI continues to drive innovation and investment, companies must balance the costs of development with investor expectations for growth and profitability. The coming weeks will be crucial in determining the market&#8217;s direction as we approach the end of 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Close Lower Amid Tech Sector Concerns On Thursday, October 31, 2024, Wall Street experienced a significant downturn as 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