U.S. stocks closed lower on Thursday, with tech stocks leading the decline after Federal Reserve Chairman Jerome Powell’s hawkish comments. The Dow Jones fell 0.2%, the S&P 500 dropped 1%, and the Nasdaq slid 1.6%. Eight of the 11 S&P 500 sectors ended in negative territory, with consumer discretionary, communication services, materials, and tech stocks hit the hardest.

Tech giants like Microsoft, Alphabet, and Meta reported earnings, with Microsoft beating estimates but forecasting increased spending, leading to a stock drop. Meta also beat estimates but saw its stock decline, while Alphabet’s stock rose after exceeding expectations. The ongoing earnings season has investors on edge amid concerns about spending in the AI sector.

President Trump and Chinese President Xi Jinping met in South Korea, agreeing to roll back tariffs on China in exchange for increased agricultural purchases and a crackdown on fentanyl trafficking. The market’s losses followed record highs earlier in the week and uncertainty over another interest rate cut in December after Powell’s comments. Market volatility is expected to continue as trade talks and earnings reports unfold.

For more detailed insights and stock analysis, visit Zacks Investment Research for the latest recommendations and free stock analysis reports on Microsoft Corporation (MSFT), Alphabet Inc. (GOOGL), and Meta Platforms, Inc. (META). Keep up to date with market news and analysis from Zacks Investment Research for a comprehensive view of the current financial landscape.

Read more at Nasdaq: Stock Market News for Oct 31, 2025