Traders work on the floor of the New York Stock Exchange (NYSE) on January 28, 2026 in New York City.
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of S&P500 I fell down on Thursday and got stuck. microsofttraders reacted to the mega-cap technology company’s latest earnings results and the Federal Reserve’s interest rate decision.
The broader market index fell 0.13% to end at 6,969.01. Nasdaq Composite It fell 0.72% to end at 23,685.12. of Dow Jones Industrial Average It advanced by 0.11% (55.96 points) and settled at 49,071.56. In cryptocurrencies, Bitcoin The stock fell more than 5% to its lowest level in nearly two months.
Microsoft posted its worst day since March 2020, with the benchmark down about 10%. That came after members of the Magnificent Seven reported slowing cloud growth in the second quarter of their fiscal year. The company also issued a soft outlook for operating margin for the fiscal third quarter.
A slide in software stocks added to the losses as investors grew concerned that artificial intelligence could disrupt Microsoft’s business model. ServiceNow The stock fell about 10% even though fourth-quarter profits and sales beat expectations. shares of oracle and sales force They fell by 2% and 6%, respectively.
of iShares Enhanced Technology Software Sector ETF (IGV) The index, which tracks the performance of the software sector, slipped into bear market territory on Thursday, dropping about 5% on the day and nearly 22% below its recent high. The fund’s move puts it on track for its biggest single-day decline since last April.
“AI is kind of a double-edged sword here. It’s contributing to growth and spending. It’s also contributing to valuations being where they are now,” said Rob Williams, chief investment strategist at Sage Advisory. “There are now more questions about it, making it difficult to continue to deliver positive news.”
Microsoft’s disappointing results add pressure apple Earnings are expected to be reported after the bell on Thursday. Williams said diversification will be key for investors going forward, as it’s becoming increasingly difficult for mega-cap tech stocks to spark positive sentiment in the market unless they deliver “explosive” numbers.
“Earnings are the path to good returns for the stock market this year because the multiples don’t have much room to contribute,” he told CNBC. “The breadth of the market is widening, but we are still very focused.”
As a positive opinion, meta platform Shares rose more than 10% after parent company Facebook beat first-quarter revenue estimates. In other places, caterpillar Shares rose more than 3% after the industrial giant reported fourth-quarter results that easily beat street prices.
Meanwhile, in Washington, the Senate on Thursday failed to pass a procedural vote on a government funding package, raising the possibility that much of the federal government will be shut down this week. If lawmakers are unable to move forward with the funding bill, the shutdown will go into effect Saturday at 12:01 a.m. ET.
