Volatility ripped back through global markets Thursday as Microsoft’s sharp selloff dragged U.S. tech stocks lower and renewed risk-off pressure sent Bitcoin tumbling.
Microsoft shares plunged 12%, marking their worst session since March 2020, after investors zeroed in on slowing Azure cloud growth and cautious forward guidance despite earnings and revenue beats. The move erased roughly $400 billion in market value and weighed heavily on tech-heavy indices.
By midday in New York, the S&P 500 slid 1% to around 6,900, while the Nasdaq 100 dropped 1.6%. The Dow Jones and Russell 2000 fared better, cushioned by lower exposure to mega-cap technology.
The selloff extended across enterprise software. ServiceNow fell 12% as markets focused on decelerating momentum, while Salesforce slid 8% and Oracle dropped 5%. SAP sank 16% after weak results and outlook compounded pressure across the sector.
Not all megacaps fell. Meta surged more than 8% after strong earnings, upbeat guidance, and higher planned AI spending. IBM climbed 6% on better-than-expected results, standing out in an otherwise bruising tech session.
Outside technology, defense and travel stocks rallied. Lockheed Martin jumped over 5% following strong earnings, pushing its January gains above 30%. Royal Caribbean surged 15%, Southwest rose 14%, and Carnival added 7% after upbeat travel demand signals.
Commodities cooled after recent extremes. Gold slid 3% after topping near record highs, while silver dropped 4%. Copper and oil bucked the trend, with copper hitting fresh records and crude climbing above $65 a barrel.
Crypto markets saw intensified selling. Bitcoin fell 5% to near $85,000, its steepest daily drop since mid-October. Ethereum and Solana both declined around 6%, while shares of Strategy slid 9% amid broader crypto-linked equity weakness.
Markets now appear less driven by macro headlines and more sensitive to company-level signals, particularly around growth, AI monetization, and earnings durability.
