Stocks fell on Thursday as Wall Street digested discouraging quarterly reports from megacap technology companies and awaited further results.

The S&P 500 fell 1.6%, while the Nasdaq Composite lost 2.4%. Both indexes are on track for a second straight day of declines. The Dow Jones Industrial Average slipped 425 points or 1%.

Microsoft Shares fell 6% after the tech giant’s revenue forecast disappointed investors and overshadowed a quarterly profit rise. Metaplatforms fell more than 3% after Facebook parent company missed Street expectations for user growth and warned that capital spending will rise significantly in 2025. Of course, Meta managed to outperform in both sales and profits in the third quarter.

“I think we have reached a point where the enthusiasm and potential for AI is no longer enough. While these companies are still tied to these themes and have favorable long-term growth profiles, they are not quite delivering the growth they are priced into,” said Ross Mayfield, investment strategist at Baird Private Wealth Management.

So far this week, profits from big tech companies have been mixed. While alphabet Shares rose nearly 3% on Wednesday after the company reported strong sales growth, the chipmaker said AMD fell more than 10% as investors were disappointed with the company’s fourth-quarter forecast.

Tech gains continue on Thursday with results from megacap stocks Apple And Amazon due after the bell.

The latest personal consumption expenditure price index showed 12-month inflation rose 2.1% in September, in line with estimates and nearing the Federal Reserve’s 2% target. The PCE reading is the Fed’s preferred inflation indicator.

Thursday’s PCE reading, along with Friday’s October wage and unemployment report, will be factored into the Fed’s Nov. 7 interest rate decision when it concludes its two-day policy meeting.

The increased uncertainty in the run-up to the US presidential election on November 5th has led to increased volatility in the markets. The CBOE volatility index, known as Wall Street’s “fear gauge,” topped 23 on Thursday.

The key averages are on track to end the week in the red. The Dow Jones is down 0.9% for the week so far, while the S&P 500 and Nasdaq are down 1.5% and 2%, respectively.

Correction: A previous version misstated a movement in Alphabet shares.