12:28 PM EDT, 10/31/2024 (MT Newswires) -- US equity indexes dropped after Microsoft ( MSFT ) and Meta Platforms' ( META ) results disappointed, while most government bond yields rose as investors weighed the Federal Reserve's preferred inflation data.

The S&P 500 dropped 1.4% to 5,730.1 after midday Thursday, with the Nasdaq Composite down 2.4% to 18,171.3 and the Dow Jones Industrial Average 0.7% lower at 41,853.7. Technology, consumer discretionary, and industrials led the decliners, while utilities and energy were the top gainers intraday.

Microsoft ( MSFT ) reported a year-over-year increase in fiscal Q1 earnings and sales. The technology giant's shares dropped 5.8% intraday, among the worst performers in the Dow and the Nasdaq, as investors focused on growth in the company's flagship Azure business.

Meta Platforms' ( META ) shares were down 3.3% after the company reported Q3 results. Quarterly results from two more index heavyweights, Apple ( AAPL ) and Amazon.com ( AMZN ) , are due after the bell on Thursday.

Meanwhile, in economic news, the PCE price index rose by 0.2%, as expected, trimming the year-over-year rate to 2.1% from 2.3% in August. The price index rose by 0.1% month-over-month in August. The core PCE price index increased as expected by 0.3% versus a 0.2% gain in August. The year-over-year rate remained at 2.7%.

The Institute for Supply Management's Chicago PMI reading fell to 41.6 in October from 46.6 in September, compared with an expected 47.0 print in a survey compiled by Bloomberg.

US initial jobless claims fell to 216,000 in the week ended Oct. 26 from an upwardly revised 228,000 level in the previous week, compared with expectations for 230,000 in a survey of analysts compiled by Bloomberg.

Most US Treasury yields rose intraday, with the two-year up 2.9 basis points to 4.18%. The 10-year yield jumped 4.9 basis points to 4.31%, its highest since early July.

West Texas Intermediate crude oil jumped 1.5% to $69.61 a barrel.