Microsoft Plunge Drags U.S. Stocks Ahead Of Big Earnings Week
Microsoft fell 12.1% Thursday, knocking the S&P 500 down 1.3% as investors brace for Alphabet and Amazon results and the Feb. 6 jobs report.
Overview
Microsoft Corp. shares plunged 12.1% on Thursday, accounting for more than two-thirds of the S&P 500's 1.3% decline, market trading data showed.
The sell-off came as a heavy week of corporate earnings, including reports from Alphabet Inc. and Amazon.com Inc., converged with the January nonfarm payrolls report due Feb. 6, which a Reuters poll expected to show 64,000 jobs.
The Federal Reserve's recent pause in rate cuts left markets pricing in no further easing until June, traders said.
About one quarter of the S&P 500 is set to report next week and LSEG IBES data showed that of 166 companies that reported, 76.5% beat analysts' estimates while fourth-quarter earnings are expected to have climbed 10.9% year over year.
Jim Baird, chief investment officer at Plante Moran Financial Advisors, said in an interview that companies with "very, very lofty" expectations face the onus to deliver, and investors will scrutinize AI-related capital spending plans from Alphabet and Amazon next week.
Analysis
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