Giant technology stocks further fell on Thursday, dragging the Nasdaq Composite Index to its largest two-day decline this year.
The Nasdaq Composite Index, which is concentrated in technology stocks, fell 1.8%, while the S&P 500 Index fell 1.2%. The Dow Jones index fell by approximately 250 points, or 0.8%.
Meta Platforms fell 3.7% after the Facebook parent company's latest financial report exceeded Wall Street expectations, but warned that advertising sales would decline in the fourth quarter.
The A-class stock of Google's parent company Alphabet fell 2.7%. After Tuesday afternoon, the technology giant announced disappointing cloud business growth, and the company's stock price has been struggling ever since. Microsoft fell 3.8% on Thursday, Apple fell 2.5%, and Nvidia fell 3.5%.
The Nasdaq 100 Index, which tracks the 100 largest non-financial stocks on the Nasdaq market, closed Thursday with a drop of over 10% from its July high, entering a correction zone; The Nasdaq Composite Index retreated into the correction zone on Wednesday.
Due to the rise in bond yields in recent weeks, the charm of large technology stocks has suddenly lost. The yield of the benchmark 10-year US treasury bond climbed to more than 5% in the middle of the session on Monday, the first time in 16 years. On Thursday, the yield of the treasury bond fell back to 4.843%.
The quarterly financial reports also stimulated fluctuations in other companies' stocks in the stock market. United Parcel Service lowered its sales outlook due to a slowdown in global express delivery demand, resulting in a 5.9% drop in its stock price. Comcast reported a decrease in broadband users, with its stock price falling 8.4%. Meanwhile, International Business Machines' profits and revenue exceeded analysts' expectations, and its stock price surged 4.9%.
Real estate stocks were the best-performing stocks in the S&P 500 index, rising 2.2%. American Tower rose 8.1%, leading the gains in this sector. The real estate investment trust company reported better than expected revenue and appointed the next CEO.