Dow Up, S&P 500 & Nasdaq Down on Tech Stock Sell-off

Thansettakij•Economy•252d ago

Reader Briefing

US stock markets saw mixed results as the Dow Jones edged up while the S&P 500 and Nasdaq declined due to investor concerns over technology stock performance.

•The Dow Jones Industrial Average closed with a slight gain in New York on Thursday.
•The S&P 500 and Nasdaq indices both finished in negative territory.
•Investor sell-offs in technology stocks were driven by Microsoft's lower-than-expected cloud business revenue.
•Concerns have arisen regarding the returns on significant investments in Artificial Intelligence (AI) by major tech companies.

Overview

•On Jan 29, the Dow Jones closed up 55.96 points.
•The S&P 500 and Nasdaq indices closed in negative territory, impacting technology and luxury goods sectors.
•Investor concerns over technology stock performance, particularly Microsoft's cloud revenue, led to a sell-off.
•Microsoft's Azure cloud service revenue grew 39% in its fiscal Q2 2027, a slowdown from 40% in the prior quarter and below the 39.4% predicted by analysts.
•Microsoft's stock dropped 10%, its steepest single-day fall since March 2020, reducing its market capitalization by $357 billion.
•Microsoft's market capitalization fell to $3.22 trillion.
•Other software companies also saw significant drops, including SAP down 15%, ServiceNow down 9.9%, Salesforce down 6%, Oracle down 2.2%, Adobe down 2.6%, and Datadog down 8.8%.
•Tesla shares fell 3.4% after announcing plans to increase capital expenditure to record highs.

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Key Entities

Organization

Microsoftℹ️

A technology company whose lower-than-expected cloud business revenue on January 29, led to a significant stock price drop and investor concerns.

Azureℹ️

Microsoft's cloud computing service, which reported a 39% revenue increase in fiscal Q2 2027, a slowdown that fueled investor concerns.

OpenAIℹ️

A research organization in which Microsoft has invested significantly, leading to concerns about the speed of returns on investment.

SAPℹ️

A German technology company listed on the New York Stock Exchange, whose stock fell 15% on January 29, due to a weak cloud business outlook.

ServiceNowℹ️

A software company whose stock declined by 9.9% on January 29, following a report of weaker earnings.

Salesforceℹ️

A software company whose stock fell 6% on January 29.

Oracleℹ️

A software company whose stock decreased by 2.2% on January 29.

Adobeℹ️

A software company whose stock dropped by 2.6% on January 29.

Datadogℹ️

A cloud security company whose stock plummeted 8.8% on January 29.

Teslaℹ️

An electric vehicle manufacturer whose shares fell 3.4% on January 29, after announcing increased capital expenditure plans.