Microsoft Stock’s Worst Day Since March 2020, Bitcoin Plunges 5%: What’s Moving Markets Thursday?
Volatility returned to Wall Street Thursday, the session after the Federal Reserve meeting, but this time the selloff was less macro-driven and more stock-specific.
By midday trading in New York, major tech-heavy indices were sharply lower, weighed down by a historic drop in Microsoft Corp. (NYSE:MSFT) whose outsized index weight amplified losses across benchmarks.
Microsoft shares plunged 12%, marking their worst session since March 18, 2020.
The stock fell despite beats on earnings and revenue, as investors focused on slowing Azure cloud growth and cautious guidance, with investors now questioning the pace of AI monetization. The selloff erased roughly $400 billion in market capitalization.
The S&P 500 dropped 1% to 6,900 points, while the Nasdaq 100 erased 300 points or 1.6%. The Dow Jones and the Russell 2000 were less affected given their relative underweight in tech.
Chart: Microsoft On Track For Worst Day Since 2020’s Lockdown Shock
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All members of the Magnificent Seven traded lower, except Meta Platforms (NASDAQ:META) which jumped more than 8% after a strong fourth-quarter beat, upbeat first-quarter revenue guidance and plans for higher capital spending tied to AI and advertising growth.
International Business Machines Corp. (NYSE:IBM) climbed 6% after delivering better-than-expected quarterly results and guidance, standing out in an otherwise weak session for large-cap technology stocks.
Software-related names suffered heavy declines. ServiceNow Inc. (NYSE:NOW) plunged …
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