Equity Markets Register Declines on Thursday, October

U.S. major equity indexes saw losses on Thursday, partly due to a post-earnings dip in Microsoft (MSFT), concluding October with overall declines. The Nasdaq Composite dropped 2.8% to 18,095.2, the S&P 500 fell 1.9% to 5,705.5, and the Dow Jones Industrial Average decreased by 0.9% to 41,763.5. Technology experienced the largest sectoral loss, down 3.6%, while only utilities and energy sectors closed in positive territory.

For the month of October, the Dow slid 1.3%, the S&P 500 lost 1%, and the Nasdaq declined by 0.6%.

In corporate news, Microsoft shares fell 6%, leading the Dow’s and Nasdaq’s losses, as the company projected fiscal Q2 revenue growth for Azure between 31% and 32%, following a reported 34% annual growth in cloud services. Estee Lauder (EL) withdrew its 2025 guidance and reduced its dividend as first-quarter sales were weaker than anticipated, notably impacted by challenges in China and Asian travel retail; its shares dropped nearly 21%, marking the second-largest decline on the S&P 500. Paycom Software (PAYC) led S&P 500 gains, up 21% after a strong Q3 report late Wednesday. Comcast (CMCSA) announced it is exploring a spinoff of its cable division amid cord-cutting trends, lifting its shares 3.4%, one of the top Nasdaq performers.

The 10-year U.S. Treasury yield edged up 1.2 basis points to 4.28%, while the two-year yield remained steady at 4.16%.

On the economic front, U.S. consumer spending grew more than expected in September, while the Federal Reserve’s preferred inflation measure remained stable. BMO Capital Markets noted that the resilience in consumer spending suggests potential upside for fourth-quarter growth, potentially excluding a 50-basis-point rate cut from the Fed, although a 25-basis-point reduction remains possible given moderated employment costs.

Weekly jobless claims fell unexpectedly, and U.S.-based companies announced 55,597 job cuts in October, down 24% from September but 51% higher year-over-year, per Challenger Gray & Christmas. On Friday, labor data is expected to show 101,000 new U.S. jobs for October, a drop from September’s 254,000, according to Bloomberg.

West Texas Intermediate crude climbed 2.8% to $70.52 per barrel on optimism around U.S. fuel demand and a surprise drawdown in crude and gasoline inventories, with additional support from speculation on a potential delay in OPEC+ production increases. Gold slipped 1.6% to $2,757 per ounce, while silver declined 3.6% to $32.84 per ounce.