Brendan McDiarmid | reuters
The broader market index slipped 1.2%, while nasdaq composite There was a decline of 2.3%. Dow Jones Industrial Average Fell 213 points or 0.4%.
Microsoft dragged down the benchmark with an 11% decline, which would be its worst day since March 2020. This comes as the “Magnificent Seven” member reported that cloud growth has slowed in the second quarter of the fiscal year. The company also issued soft guidance on operating margins for the third quarter of the fiscal year.
Losses were extended by a slide in software stocks as fears grew among investors that artificial intelligence would disrupt Microsoft’s business model. service now Shares fell 12% despite better-than-expected earnings and revenue in the fourth quarter. shares of Oracle And sales force Decreased by 5% and 8% respectively.
iShares Expanded Tech-Software Sector ETF (IGV) — which tracks the performance of the software sector — fell into bear market territory on Thursday, with a 6% loss on the day that left it 22% off its recent high. The fund’s move comes as it is on track for its biggest single-day decline since a tariff-induced decline last April.
now the pressure is on Apple to deliver its earnings results, which will be reported after the bell on Thursday.
On a positive note, meta Facebook shares jumped 7% after its parent company gave a stronger-than-expected first-quarter sales forecast.
Earnings elsewhere, Kamla Shares rose more than 1% after the industrial giant reported fourth-quarter results that handily beat the Street.
Stocks are coming off a flat session after S&P 500 It briefly topped the 7,000 range after the Fed kept its benchmark interest rate at a range of 3.5% to 3.75%.
In its post-meeting statement, the policy-making Federal Open Market Committee said indicators were suggesting that “economic activity is growing at a solid pace” and the unemployment rate “has shown some signs of stabilization.” Still, Fed funds futures trades are still pricing in a two-quarter percentage point reduction to the end of 2026, according to the CME FedWatch tool.
“The Fed’s statement was largely as expected, and markets tend to be prone to surprises,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute. “We are paying close attention to earnings and economic data to navigate the next phase, but also would not be surprised to see some volatility related to the midterm elections in 2026.”
<a href=