29.01.202621:08:45UTC+00Wall Street Slips as Microsoft Shock Rekindles AI Valuation Fears

U.S. stock markets concluded Thursday with a mixed performance after a subdued trading day. The S&P 500 experienced a slight decline of 0.1%, while the Nasdaq dropped by 0.5%. Conversely, the Dow Jones saw a modest increase of 0.1%. The decline was primarily influenced by a notable selloff in the technology sector, as investors re-evaluated AI-related valuations amid a dense schedule of corporate earnings reports. Microsoft notably declined by 10% following its announcement of slower growth in cloud services, coupled with escalating AI infrastructure expenditures. This downturn affected the broader technology sector, imposing significant pressure on the Nasdaq. Additionally, software companies recorded declines due to renewed concerns over profit margins, contributing to the retreat of growth stocks.

On a more positive note, Meta's share price surged by 10.4% after reporting a stronger-than-expected revenue outlook. IBM rose by 5.1% and Caterpillar increased by 3.4%, both companies having exceeded earnings forecasts, thereby outperforming the market. In other developments, Apple closed the day 0.7% higher, with its results scheduled for release after the market close. Meanwhile, a moderate demand for safe-haven assets bolstered Treasuries, while commodities displayed diverging trends: oil prices rose due to geopolitical risks, whereas gold prices retreated from recent peaks.