After a day of sharp swings, Wall Street ends nearly where it began
NEW YORK (AP) — A day of dramatic swings on Wall Street, including Microsoft’s worst drop in years and a sudden reversal for the price of gold, finished with only relatively modest moves on Thursday.
The S&P 500 slipped 0.1% after flirting with its record high in the morning and dropping by as much as 1.5% later in the day. The Dow Jones Industrial Average rose 55 points, or 0.1%, after erasing an earlier loss of more than 400 points, and the Nasdaq composite fell 0.7%.
Microsoft was the heaviest weight on the market by far, and the tech giant tumbled 10% even though it reported stronger profit and revenue for the latest quarter than analysts expected. Investors honed in instead on how much Microsoft is spending on investments, whether growth in its Azure cloud business will slow and how long its push into artificial-intelligence technology will take to turn into big profits.
It was the stock’s worst day since the market’s COVID crash in 2020.
Tesla also weighed on the market after falling 3.5%. It delivered a bigger profit for the latest quarter than analysts expected, but the results were sharply lower than from a year earlier. Tesla’s leader, Elon Musk, has been trying to get investors to focus less on its flagging car sales and more on the company’s robotaxis and robots.
Companies across the market are under pressure to deliver at least solid growth in profits following record-setting runs for their stock prices. Stock prices tend to follow the path of corporate profits over the long term, and earnings need to rise to quiet criticism that stocks have grown too expensive.
ServiceNow dropped 9.9% even though it reported a stronger profit for the latest quarter than expected. Analysts praised the performance, but it wasn’t enough to stop a slide for the stock that’s been underway since the summer.
Still, more stocks rose within the S&P 500 than fell. Leading them was Meta Platforms, which rallied 10.4% after the company behind Facebook, Instagram and WhatsApp topped profit expectations, even though it also said it will continue its massive investments in AI.
IBM was another winner and climbed 5.1% after surpassing analysts’ expectations for profit and revenue. Southwest Airlines flew 18.7% higher even though its profit fell short of forecasts. It gave a forecast for earnings in 2026 that blew past analysts’ expectations, saying it’s seeing strong momentum after making changes like charging baggage fees and having assigned seating.
All told, the S&P 500 slipped 9.02 points to 6,969.01. The Dow Jones Industrial Average added 55.96 to 49,071.56, and the Nasdaq composite fell 172.33 to 23,685.12.
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