US stocks fall early as Microsoft selloff drags indexes lower
US stocks declined early, led by an 11% drop in Microsoft shares following earnings that raised concerns about cloud growth and AI spending.Summary
US equities fell at the opening bell, with the S&P 500 down about 0.8% and the Nasdaq Composite down 1.6%, primarily driven by a sharp selloff in Microsoft shares. Microsoft stock plunged over 11% in early trading, its steepest intraday drop since March 2020, despite the company reporting better-than-expected fiscal second-quarter revenue and profit, with cloud revenue exceeding $50 billion for the first time.
Investors reacted negatively due to worries that cloud growth might be decelerating and that the high capital spending required for AI infrastructure might not yield immediate returns. Microsoft, a major beneficiary of the AI boom, has seen its stock reassessed after previously surpassing a $4 trillion market cap.
The broader tech sector also weakened, with Tesla shares falling nearly 2% after reporting its first annual revenue decline. This market pressure increases scrutiny on Apple, which is set to report earnings later that day, as investors seek confirmation of sustained growth across the technology sector.
(Source：Crypto Briefing)