Tech Earnings Stumble and Dollar Holds Amid Mixed Economic Signals

Global markets experienced a downturn as Meta's and Microsoft's warnings on AI costs raised concerns among investors. The dollar held firm amidst strong US growth indicators and cautious rate speculation. Meanwhile, European shares slid due to underwhelming earnings, as the US presidential election looms.

Global financial markets took a hit on Thursday following warnings from tech giants Meta Platforms and Microsoft about escalating costs associated with artificial intelligence investment. The announcements heightened investor concerns that the financial benefits from AI could take longer to materialize than anticipated.

In the currency markets, the dollar retreated from recent highs against the yen after the Bank of Japan held interest rates steady, yet maintained a hawkish stance, hinting at a potential rate hike in December. Investors tread carefully ahead of critical economic data set to release soon, including the U.S. non-farm payrolls and the Federal Reserve's upcoming policy decision.

Adding to the market's trepidations were mixed movements in European stocks, as the STOXX 600 index dropped significantly, driven by disappointing earnings from companies like BNP Paribas and notable tech firms. The market braces itself as the U.S. presidential election approaches, with major indexes reflecting a cautious outlook.

(With inputs from agencies.)