U.S. Stocks Dip as Wall Street Reacts to Mixed Big Tech Earnings and U.S.-China Trade Talks

On Thursday, the U. S. stock market backed off from its record highs while investors were evaluating the mixed signals coming from Big Tech earnings and the latest changes in U. S.-China trade relations.

The S&P 500 plummeted by 0.5%, the Dow Jones Industrials lost 199 points and Nasdaq fell by 0.7%, with investors losing interest in the recent rallies.

📉 Mixed Sentiment on Wall Street

U.S. President Donald Trump called his long-awaited meeting with Chinese President Xi Jinping “amazing,” claiming it resolved several trade-related issues. However, markets remained cautious, given the lingering tensions between the world’s two largest economies.

Among major stocks, Microsoft and Meta Platforms slipped following their earnings reports, while Alphabet (Google) surged after reporting record-breaking quarterly results.

💰 Alphabet Surges on Record-Breaking Earnings

After Alphabet Inc. announced its first-ever quarterly revenue of more than $100 billion and a $35 billion profit, which were both above Wall Street’s predictions, the stock went up by 8.6%. The verdict was delivered not long before the events unfolded in a U. S. court regarding the anti-trust case of the Justice Department against Google that analysts interpreted as quite a mild outcome for the titan in technology.

📉 Meta, Microsoft Fall on Spending Concerns

Meta Platforms Inc. shares tumbled over 9%, despite strong earnings, after the company warned that expenses will rise significantly in 2026 amid massive AI investments and infrastructure expansion.

Similarly, Microsoft dropped 2% as investors reacted to the company’s announcement of increased spending to boost its cloud computing and AI infrastructure.

Amazon and Apple are scheduled to release their quarterly reports after market close on Thursday.

🚀 Biotech Buzz: Metsera Soars

In premarket trading, Metsera, a U.S.-based biotech firm, soared more than 20% following reports that Novo Nordisk made a rival acquisition bid to undercut Pfizer’s offer for the obesity drugmaker.

🌏 Global Markets React

Global indices showed mixed reactions on Thursday:

Germany’s DAX slipped 0.2%

Britain’s FTSE 100 lost 0.6%

France’s CAC 40 dropped 0.9%

In the Asia-Pacific region, the Bank of Japan’s decision to maintain rates led to a slight to marginally Nikkei 225’s closing at 51,325.61. Hong Kong’s Hang Seng index retreated by 0.2%, and the Shanghai Composite decreased by 0.7% as well. The Hong Kong Monetary Authority made a similar move to that of the U. S. Federal Reserve, reducing its base rate by 25 basis points to 4.25%.

The Kospi Index of South Korea surpassed the 4,000 level for the first time in history, rising 0.1% at 4,086.89, lifted by the easing of trade dispute with the U. S. and solid corporate profits.

💵 Fed Rate Cut Sparks Volatility

U.S. markets were volatile on Wednesday after the Federal Reserve cut interest rates for the second time this year to support a weakening job market. However, Fed Chair Jerome Powell tempered expectations for further cuts, saying another rate reduction in December was “far from a foregone conclusion.”

🛢️ Energy Prices Ease

U.S. crude oil fell $0.36 to $60.12 per barrel

Brent crude, the global benchmark, dropped $0.43 to $63.89 per barrel