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The S&P 500 fell on Thursday, bogged down by Microsoft, as traders reacted to the megacap technology company’s latest earnings results as well as the Federal Reserve interest rate decision.
The Dow Jones Industrials moved into positive range, 55.46 points to conclude Thursday at 49.071.56.
The much-broader index skidded 9.02 points to 6,969.01.
The NASDAQ lost 172.33 points to 23,685.12.
The stock nicknamed “Mr. Softee” dragged down the benchmark with an 12% slide, which would be its worst day since March 2020. That’s after the “Magnificent Seven” member reported that cloud growth slowed in the fiscal second quarter.
The company also issued soft guidance on operating margin for the fiscal third quarter.
A tumble in software stocks added to the losses, with as fears grew among investors that artificial intelligence would disrupt Microsoft’s business model.
ServiceNow shares pulled back 12% even after better-than-expected earnings and revenue for the fourth quarter. Shares of Oracle dumped 4% and Salesforce moved lower 7%.
Fellow “Magnificent Seven” member Tesla shares saw losses as well, pulling back more than 1% after the electric vehicle maker recorded a drop in annual revenue for the first time ever.
Those disappointing results now puts the pressure on Apple to deliver with its earnings results, which are set to be reported after the bell Thursday.
On a positive note, Meta shares jumped 10% after the Facebook parent gave a stronger-than-expected first-quarter sales forecast.
Elsewhere, Caterpillar shares were up 3% after the industrial giant reported fourth-quarter results that easily beat the Street.
Prices for the 10-year Treasury gained a small bit of territory, lowering yields to 4.24% from Wednesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.38 to $65.59 U.S. a barrel.
Gold prices recovered with a vengeance, gaining $85.10 to $5,388.70.
