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

Meta Bucks The Trend, Travel Stocks Soar

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 12% despite posting solid headline results because investors focused on forward-looking signals that pointed to slowing momentum, while Salesforce Inc. (NYSE:CRM) slid 8% and Oracle Corp. (NYSE:ORCL) fell 5%.

German software giant SAP SE (NYSE:SAP) cratered 16% after disappointing results and outlook weighed on sentiment across enterprise software.

Outside tech, Lockheed Martin Corp. (NYSE:LMT) soared more than 5% following upbeat earnings and guidance. The rally pushed the defense contractor's January gain above 30%, marking its strongest monthly performance ever.

Travel and leisure stocks surged after positive earnings. Royal Caribbean Group (NYSE:RCL) jumped 15% and Southwest Airlines Co. (NYSE:LUV) advanced 14%, lifting the broader travel complex.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) rose 9%, while Carnival Corp. (NYSE:CCL) gained 7%.

In other notable moves, First Solar Inc. (NASDAQ:FSLR) slid 11% after BMO Capital Markets downgraded the stock from ‘Outperform’ to ‘Market Perform’ and cut its price target from $285 to $263. United Rentals Inc. (NYSE:URI) plunged 14% after missing sales expectations, marking the worst performance in the S&P 500.

Las Vegas Sands Corp. (NYSE:LVS) sank 13.5% after issuing weak guidance tied to softer trends in Macau.

Gold And Silver Cool, Copper And Oil Move Higher, And Bitcoin Sinks

Commodity markets cooled after hitting extreme levels overnight.

Gold tumbled 3% to $5,250 after topping at nearly $5,600 earlier, while silver slid 4% to $112.

Copper and oil bucked the trend. Copper gained 2.5% to a fresh record at $6.20 a pound, while WTI crude climbed 3.5% above $65 a barrel, the highest level since last August.

Selling pressure intensified in crypto markets. Bitcoin (CRYPTO: BTC) fell 5% to $85,000, on track for its worst session since mid-October.

Shares of Strategy Inc. (NASDAQ:MSTR) dropped 9%, hitting levels last seen in September 2024. Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) each slid about 6%.

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) slid 0.82% to $634.33.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) edged down 0.13% to $489.47.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) dropped 1.53% to $623.51.
• The iShares Russell 2000 ETF (NYSE:IWM) eased 0.34% to $262.41.
• The Communication Services Select Sector SPDR Fund (NYSE:XLC) outperformed, up 1.8%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 2.9%.

Russell 1000's Top 5 Gainers And Losers On Thursday

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