Stocks fell lower on Thursday as market participants reacted to the first series of Big Tech quarterly earnings reports. Investors also turned their attention towards the latest trade developments between the United States and China as their respective leaders concluded a meeting with a tentative trade truce.

The Dow Jones Industrial Average (DIA  ) dropped over 100 points on Thursday to settle at 47,522.12, while the broader market S&P 500 Index (SPY  ) closed down about 1% to end the day at 6,822.34. The tech-heavy Nasdaq Composite (QQQ  ) also declined about 1.6% to settle at 23,581.14.

Big Tech earnings dominated investor sentiment on Thursday as overnight news from President Donald Trump and Chinese President Xi Jinping's meeting in South Korea reported that the two leaders of the largest global economies reached a deal that would delay Beijing's rare earth export controls -- one of the biggest points of contention between the nations -- by a least a year. In concession, the United States said it would reduce its tariffs on Chinese imports related to fentanyl to 10% from 20%.

Alphabet (GOOG  ) (GOOGL  ) reported strong third-quarter earnings that beat market expectations, with its cloud business revenue notably increasing 35% to $15.15 billion from robust artificial intelligence demand. That growth led the tech giant to increase its full-year capital expenditures estimate to a new range of $91 billion to $93 billion.

"We have signed more deals over one billion dollars through Q3 this year than we did in the previous two years combined," CEO Sundar Pichai told analysts during the company's earnings call, added that over 70% of existing Google Cloud clients use their AI products.

Meta Platforms (META  ) also reported better-than-expected sales numbers for its third-quarter, but stated it incurred a $15.93 billion one-time tax charge related to Trump's One Big Beautiful Bill Act, adding that the company expects the law to result in "a significant reduction" in its U.S. federal cash payments going forward.

Chief Executive Officer Mark Zuckerberg said during the company's earnings call that Meta'a AI initiatives consistently require more computing power, leading the company to increase its full-year capital expenditures guidance to a new range of $70 billion to $72 billion.

Microsoft (MSFT  ) joined its peers in reporting positive results for its fiscal first-quarter, highlighting that its Intelligent cloud business -- which includes Microsoft Azure-- saw revenues climb 28% year-over-year to $30.9 billion. The tech company said its OpenAI investment resulted in a $3.1 billion impact to its net income during the quarter.

The company said it expects Azure's growth at constant currency to be 37% in its current quarter, as the company continues to benefit from its growing AI business.

Looking ahead, market participants will turn their attention towards another round of earnings reports, including megacaps Apple (AAPL  ) and Amazon (AMZN  ) on Friday.