Global Market Tremors: Microsoft, Meta Drive Largest Stock Drop in Weeks

On Thursday, global shares experienced a notable drop, marking their largest daily decline in three weeks, largely influenced by substantial decreases in Microsoft and Meta stock prices. These market shifts followed monetary policy updates from the Federal Reserve and Bank of Japan, propelling the dollar's value against the yen.

Despite U.S. President Donald Trump's announcement of a trade agreement with China's President Xi Jinping, reactions remained muted. The deal included tariff adjustments and commitments on fentanyl trade, U.S. soybean purchases, and rare earth exports. Simultaneously, the stock market in the U.S. closed lower, with Meta falling 11.3% due to anticipated increased capital costs and a major bond sale plan by its parent company.

The Dow Jones, S&P 500, and Nasdaq all recorded declines, while markets speculated on potential interest rate cuts at the Fed's December meeting. Currency market dynamics saw the dollar rising, with the euro, sterling, and yen showing varied reactions. As the trading scene unfolds, some investors view market pullbacks as strategic buying opportunities.