The tech-heavy Nasdaq composite index fell further into correction territory after Meta became the latest tech company to offer guidance that failed to live up to expectations.

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After a 1.8% drop on Thursday, the index closed below its 200-Day Moving Average, ending at 12,595.61. The S&P 500 fell 1.2%, while the Dow Jones fell 250 points or 0.8% on the penultimate trading day of the week.

An index or a stock enters "correction territory" after falling 10% from its peak in a bull market. While the Nasdaq is already down over 10% from its July peaks, the S&P 500 is down 9.8% from the top as of Thursday's close. However, the Nasdaq is still up over 20% so far in 2023.

"Wall Street hasn’t been impressed with big-tech earnings so far and the remaining ones, Amazon and Apple will likely struggle given the weakening outlook for the US economy," said Ed Moya, senior market analyst at Oanda. "Strong demand from today’s seven-year auction shows you investors are still concerned with all the geopolitical risks that remain on the table."

Facebook-parent Meta beat on top and bottom lines in the third quarter, but the company noted that it was seeing some advertising softness so far this quarter. Investors also worried about cost control with the company’s Reality Labs division, which shed $3.7 billion throughout the quarter. Meta shares slid 3.7%.

Big tech companies that have reported earnings so far, excluding Amazon, have wiped off nearly $400 billion in market capitalisation so far since their respective earnings. That includes Alphabet, that saw a $180 billion rout, the biggest on record on Wednesday, after the stock fell 10% post its results.

Amazon reported results after market hours on Thursday, which were better than expectations.

The market didn’t get any help from the third-quarter gross domestic product report, which came in much stronger than expected. U.S. GDP grew at a 4.9% annualized clip from July through September, while economists polled by Dow Jones forecast 4.7%.

(With Inputs From Agencies.)