Shares skidded Friday in Europe and Asia, with heavy selling of technology shares pulling Hong Kong’s benchmark 3.7 percent lower.
Germany’s DAX dropped 0.9 percent to 13,090.91 and the CAC40 in Paris lost 0.6 percent to 6,205.73. Britain’s FTSE 100 shed 0.6 percent to 7,029.81. The future for the S&P 500 was down 0.8 percent while that for the Dow Jones Industrial Average fell 0.2 percent.
Shares fell in Tokyo even as the government approved a massive stimulus spending package to help the world’s No. 3 economy cope with inflation. As expected, the Bank of Japan wrapped up a policy meeting by keeping its ultra-lax monetary policy unchanged even as it forecast higher inflation.
The Nikkei 225 index lost 0.9 percent to 27,105.20.
The stimulus package includes government funding of about 29 trillion yen ($200 billion) in subsidies and other measures to help soften the burden of costs from rising utility rates and food prices.
In Hong Kong, the Hang Seng lost nearly 565 points to 14,863.06, while the Shanghai Composite index shed 2.3 percent to 2,915.93. News of new coronavirus outbreaks in China added to concerns, as technology shares sank after major selling of big tech companies on Wall Street.
Chinese E-commerce giant Alibaba’s Hong Kong-listed shares tumbled 4.8 percent, while JD.com lost 6.7 percent. Hong Kong’s tech index, which includes 30 top technology companies listed in Hong Kong, dropped 5.6 percent.
Elsewhere in Asia, the Kospi in Seoul declined 0.8 percent to 2,268.40 and Australia’s S&P/ASX 200 dropped 0.9 percent to 6,785.70. In India, the Sensex rose 0.3 percent, while Bangkok’s SET edged 0.2 percent higher.
On Thursday, Wall Street had a mixed session as carnage among tech companies offset gains in other sectors. The S&P 500 fell 0.6 percent, with about 44 percent of stocks within the benchmark index losing ground. The tech-heavy Nasdaq fell 1.6 percent, while the Dow Jones Industrial Average rose 0.6 percent. The Russell 2000 index added 0.1 percent.
Facebook’s parent company, Meta Platforms, plummeted 24.6 percent for the biggest drop in the S&P 500 after reporting a second straight quarter of revenue decline amid falling advertising sales and stiff competition from TikTok.
It joined other tech and communications stocks, such as Google’s parent company, Alphabet, and Microsoft, in reporting weak results and worrisome forecasts over advertising demand. Alphabet fell 2.9 percent and Microsoft slid 2 percent.
Amazon slid 19 percent in after-hours trading after the retail giant issued an estimate for sales in the last quarter of the year came in well below analysts’ forecasts. The stock fell 4.1 percent in regular trading before the release of its latest quarterly results.
Construction equipment maker Caterpillar jumped 7.7 percent after it handily beat analysts’ third-quarter profit forecasts. That big gain helped boost the 30-company Dow.
Wall Street has more earnings to review Friday, including Exxon Mobil, Chevron, and Charter Communications.
Excluding the Nasdaq, the major indexes are on pace for weekly gains. And the S&P 500 remains solidly on track to end October in the green.
Markets got some encouraging economic news Thursday as the government reported the U.S. economy returned to growth last quarter, expanding 2.6 percent. That marks a turnaround after the economy contracted during the first half of the year.
The economy has been under pressure from stubbornly hot inflation and the Federal Reserve’s efforts to raise interest rates in order to cool prices. The central bank is trying to slow economic growth through rate increases, but the strategy risks going too far and bringing on a recession.
S&P Dow Jones Indices said Thursday that insurer Arch Capital Group will replace Twitter in the S&P 500 index before the opening of trading Tuesday ahead of Elon Musk’s acquisition of Twitter, a transaction expected to close Friday.
In other trading, the dollar rose to 147.71 Japanese yen from 146.31 yen late Thursday. The euro slipped to 99.61 cents from 99.66 cents.
Benchmark U.S. crude oil lost $1.16 to $87.92 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.17 on Thursday to $89.08 per barrel. Brent crude oil lost 86 cents to $94.18 per barrel.
