US stocks sank in mid-morning trading on Thursday on a tech-driven selloff as investors came away from megacap tech earnings fretting about AI spending.
The tech-heavy Nasdaq Composite (^IXIC) led losses, shedding roughy 2.6% amid an over 10% plunge from Microsoft (MSFT). The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) followed the tech sector down, shedding 1.5% and 0.8%, respectively, following Wednesday's muted performance.
Microsoft's slide deepened Thursday, after its earnings report spooked investors with higher-than-anticipated capital spending and a slowdown in quarterly cloud sales growth.
That took some of the wind out of Meta's (META) earnings performance. Shares gained over 7% thanks to a surprisingly strong quarterly revenue outlook. And the company said it plans to spend up to $135 billion on its data center build-out this year, a boost to its push to win the AI race.
Meanwhile, Tesla (TSLA) flipped to a loss, shedding nearly 3% as the company focused on a strategy shift from EVs to robots and a quarterly earnings beat. But the company also saw its first-ever decline in annual revenue. Investors are now gearing up for Apple’s (AAPL) quarterly earnings, due after the closing bell.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.