(Bloomberg) -- Stocks extended declines on the busiest day of the earnings season as investors digested results from Microsoft Corp. and Meta Platforms Inc. as well as economic data that blurred the picture for Federal Reserve rate cuts.

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US equity futures fell after a muted session on Wall Street, with Nasdaq 100 contracts retreating more than 1%. Microsoft and Meta were both down about 4% in pre-market trading. The slide in the two stocks combined represented half of the losses in the Nasdaq futures, according to Bloomberg calculations. Amazon Inc. and Apple Inc. are due to report today.

The dollar was steady, and on pace for its best month in over two years, after investors trimmed bets on Fed policy easing after robust economic-growth and jobs data Wednesday. One-week implied volatility on the Bloomberg Dollar Spot Index rose to the highest since December 2022, indicating that traders expect wild swings in the greenback over the US presidential election.

“Sentiment is shakier this morning as fallout from rather disappointing Microsoft and Meta earnings continues,” said Michael Brown, a senior research strategist at Pepperstone Group Ltd. “Yesterday’s US GDP data once more evidenced the continued ‘US exceptionalism’ theme which still underpins much of the USD’s recent strength. I still find it tough to bet against the greenback in such an environment.”

The Stoxx Europe 600 retreated for a third day, on track for its biggest monthly decline in a year. French lender BNP Paribas SA was the biggest drag on the index, plunging more than 7% after reporting third-quarter earnings.

Shares in Japan, Australia and South Korea declined, weighing on an index of the region’s equities, which headed for its worst monthly performance since August 2023. Mainland Chinese shares were mixed and those in Hong Kong rose, after a report showing monthly Chinese manufacturing data registered its first expansionary reading since April.

The BOJ kept its benchmark interest rate unchanged after uncertainties increased over the outlook of the economy and the stability of the government after the ruling coalition suffered its worst electoral result since 2009. The yen strengthened below 153 per dollar.

Oil edged higher, extending its gains from the previous session. Gold declined after touching a fresh record in the prior session. Demand for the precious metal was partly supported by the uncertainty posed by next week’s vote.