US stocks closed lower on Thursday as investors weighed Big Tech results and the outcome of a meeting between President Donald Trump and Chinese President Xi Jinping. The S&P 500 fell 0.99% to 6,822.34, the Nasdaq slid 1.57% to 23,581.14, and the Dow Jones lost 109 points, or 0.23%, to settle at 47,522.12.
Tech earnings drive market moves
Earnings from the largest US technology firms set the tone. Alphabet gained 2.5% after posting stronger-than-expected quarterly results. But Meta plunged more than 11% as it warned of sharply higher spending on artificial intelligence. Microsoft shares also dropped nearly 3% on similar concerns. Nvidia slipped as well, helping lead a rotation out of technology stocks.
Trump–Xi trade meeting
Trade was also in focus. President Trump agreed to reduce tariffs on Chinese fentanyl imports to 10%, bringing overall levies on Chinese goods down to 47% from 57%. In return, Beijing pledged to curb fentanyl flows into the US, purchase more American agricultural products, and delay new rare earth export restrictions by a year. Trump declared the “rare earth issue has been settled.” But other disputes linger, including controls on Nvidia chip exports and the forced sale of TikTok. Analysts expect trade volatility to remain a feature of markets.
Market backdrop
The declines came a day after the major US benchmarks touched fresh intraday highs. Federal Reserve Chair Jerome Powell had dampened expectations for another rate cut in December, a factor that kept pressure on equities late in Wednesday’s session.
Australian market outlook
Australian shares are expected to open modestly higher. Futures point to a 13-point rise, or 0.2%, for the S&P/ASX 200. Origin Energy and Capstone Copper will release quarterly updates, while a series of annual meetings are scheduled across the market. Data highlights include September private sector credit at 11.30am and China’s October manufacturing PMI at 12.30pm.
