Meta’s Sharp Decline Drags Down Nasdaq and S&P 500, While Dow Jones Holds Stronger
- Market Overview: A Tale of Two Indices
- Meta’s $43 Billion Bombshell
- Fed Throws Cold Water on December Rate Cut Hopes
- Earnings Spotlight: Who Shined and Who Stumbled?
- Commodities Corner: Natural Gas Inventories Build
- Corporate Drama: Pfizer Fires Shot at Novo Nordisk
- Frequently Asked Questions
On October 31, 2025, U.S. stock markets showed mixed performance as investors digested corporate earnings reports and Federal Reserve comments. Meta's steep drop overshadowed Alphabet's gains, while the Dow Jones edged higher. Here’s a breakdown of the key movers, economic data, and what to watch next.
Market Overview: A Tale of Two Indices
U.S. indices painted a divided picture today. The Dow Jones Industrial Average managed a 0.47% gain, but the S&P 500 and Nasdaq Composite fell 0.30% and 0.80%, respectively. The divergence came as investors weighed strong earnings from some tech giants against Meta’s shocking guidance revision and cautious Fed remarks.
Meta’s $43 Billion Bombshell
Meta Platforms (formerly Facebook) cratered 9.91% to $677.18 after CFO Susan Li warned that 2026 investment growth WOULD be "significantly higher" than the previously guided $30 billion increase. JPMorgan now estimates a $43 billion jump, pushing annual expenditures to $115 billion. This unexpected capex surge spooked investors already wary of rising rates.
Fed Throws Cold Water on December Rate Cut Hopes
The Fed Chair’s Tuesday evening comments dampened expectations for a December rate reduction, stating such a MOVE was "far from guaranteed." This hawkish tilt added pressure to growth stocks, particularly in tech where valuations rely heavily on future earnings.
Earnings Spotlight: Who Shined and Who Stumbled?
Alphabet (Google) Soars Past Estimates
The search giant delivered a 33% net income jump to $34.98 billion ($2.87/share), crushing the $2.26 consensus. Revenue grew 16% to $102.3 billion, fueled by cloud and advertising strength. "This wasn’t just a beat—it was a demolition of expectations," noted a BTCC market analyst.
Microsoft’s Cloud Growth Can’t Stop the Bleeding
Despite reporting 18% revenue growth ($77.7 billion) and adjusted EPS of $4.13 (above $3.67 estimates), Microsoft shares dipped. Investors seemed focused on rising cloud competition rather than the solid numbers.
eBay’s Weak 2026 Outlook Overshadows Q3 Beat
The e-commerce platform beat Q3 expectations ($1.36 adjusted EPS vs. $1.33 expected) but fell on disappointing preliminary 2026 guidance. Revenue grew 9% to $2.8 billion.
Eli Lilly’s Blockbuster Quarter
The pharma giant’s net income skyrocketed from $970 million to $5.58 billion ($7.02 adjusted EPS vs. $5.89 expected), driven by weight-loss drug demand. Revenue surged 54% to $17.6 billion.
Estée Lauder’s Turnaround Begins
The cosmetics firm swung to a $47 million profit ($0.13/share) from a $156 million loss last year, with sales up 4% to $3.48 billion.
Commodities Corner: Natural Gas Inventories Build
U.S. natural gas stocks ROSE by 74 billion cubic feet last week, exceeding the 71 Bcf estimate. Total working gas now stands at 3.882 trillion cubic feet—29 Bcf above last year and 171 Bcf above the five-year average.
Corporate Drama: Pfizer Fires Shot at Novo Nordisk
Pfizer accused Novo Nordisk of anti-competitive behavior after the Danish firm made a rival bid for Metsera. "This is a dominant player trying to squash emerging competition," Pfizer stated, defending its own September acquisition agreement for the obesity drug developer.
Frequently Asked Questions
Why did Meta’s stock drop nearly 10%?
Meta plunged after unexpectedly forecasting 2026 investments would grow $43 billion rather than the previously guided $30 billion, raising concerns about future profitability.
Which major tech company outperformed expectations?
Alphabet (Google) posted stellar results with EPS of $2.87 (vs. $2.26 expected) and revenue of $102.3 billion (vs. $99.85B expected), driven by cloud and ad growth.
What did the Fed say about interest rates?
The Fed Chair indicated a December rate cut was "far from guaranteed," adopting a more hawkish tone than some investors anticipated.
How did Eli Lilly perform?
Eli Lilly had a blowout quarter with EPS of $7.02 (vs. $5.89 expected) as demand for its weight-loss drugs sent revenue up 54% to $17.6 billion.
