S&P 500, Nasdaq fall as Microsoft leads tech lower with Apple earnings on deck

US stocks retreated as investors weighed concerns about AI spending following Big Tech quarterly results.

The tech-heavy Nasdaq Composite (^IXIC) dropped 0.7% as Microsoft (MSFT) stock sank, raising questions about hefty capital spending.

The S&P 500 (^GSPC) fell 0.1% while the Dow Jones Industrial Average (^DJI) was the lone index in the green, rising 0.1%.

Investors awaited Apple (AAPL) earnings, due after the bell.

Amazon (AMZN) is reportedly in talks to invest $50 billion into OpenAI, the maker of ChatGPT, according to a Wall Street Journal report.

The report states that OpenAI is seeking up to $100 billion in new investments, a figure that could value it at as much as $830 billion.

Gold (GC=F) held steady near $5,300 per ounce after easing from a record north of $5,600 on Thursday, while silver (SI=F) stayed firm north of $114 as a massive rally in precious metals took a pause.

The declines came alongside a sell-off in the stock market, with the Nasdaq Composite (^IXIC) dropping as much as 2% amid a plunge in Microsoft stock (MSFT). The tech giant’s quarterly earnings report spooked investors, given higher-than-anticipated capital spending and a slowdown in quarterly cloud sales growth.

Yahoo Finance’s Dan Howely reports:

Meta (META) reported a blowout fourth quarter after the bell on Wednesday, posting better-than-anticipated earnings per share and revenue. But the big news came during the company’s earnings call.

CEO Mark Zuckerberg used his opening remarks to deliver what felt more like a state-of-the-union address, laying out his plans for the company’s AI moves in 2026 after a tough 2025.

Read more here.

Apple shares fell just fractionally Thursday ahead of the iPhone maker’s earnings report after the bell, defying drawdown in “Magnificent Seven” tech stocks and a 2.5% drop in the Nasdaq Composite (^IXIC) as Microsoft’s (MSFT) results weighed on the index.

Yahoo Finance’s Dan Howley breaks down what investors are watching for in Apple’s results:

Read more here.

Gold (GC=F) futures fell to $5,200 after briefly topping $5,600 per ounce on Thursday, while silver also slid as a blistering rally in precious metals appeared to come to a halt.

The greenback (DX-Y.NYB) strengthened, bouncing off its lowest level since early 2022 earlier this week, putting pressure on the prices of gold and silver, which had seen stunning gains up until then.

Gold prices had rallied roughly 20% year to date as the greenback weakened against other currencies.

Meanwhile, strategists have increasingly warned traders about the rally’s speed.

“The continued surge across metals, especially gold and silver, is entering a dangerous phase, in my opinion,” Ole Hansen, head of commodity strategy at Saxo Bank, said on Thursday.

“The problem is volatility feeding on itself. As price swings intensify, liquidity thins,” he added.

Silver futures crashed 3% to hover near $106 after topping $120 per ounce on Thursday. The precious metal is up 42% year to date after a stunning rally in 2025.

Copper (HG=F) has spent the past six months surging amid trade policy uncertainty and a series of supply-and-demand shocks, which have rocked markets for the base metal, which recently crossed $13,000 per ton for the first time. Demand has skyrocketed as the metal is crucial to the buildout of AI technology.

But analysts say the intense price action may be overheated — and largely driven by speculative trading.

As I reported:

Read more here.

The Nasdaq Composite (^IXIC) sank by more than 2.5% on Thursday, on track for its largest one-day drop since October, as the tech sector sold off during the heaviest earnings week for Big Tech.

Shares in Meta (META) spent Thursday morning surging by more than 10% before paring gains after the company beat analysts’ estimates on both the top and bottom lines and boasted of even stronger AI spending to come. But Mark Zuckerberg’s company was the lone bright spot on the day.

Microsoft (MSFT) shares plummeted by more than 12% as investors worried about slowing cloud growth and the company’s ballooning AI-fueled spending, and Tesla (TSLA) slid by nearly 2% after CEO Elon Musk announced a hard pivot toward robotics.

In what will be the most-watched tech news of the day, Apple (AAPL) is set to report earnings after the bell. Investors will be focused on the strength of Apple’s iPhone 17 sales and Services segment.

Shares of software services providers fell on Thursday morning after industry giant SAP’s (SAP) quarterly results revived worries about the risk of AI disruption to its business.

The German company’s cautious cloud sales outlook saw its stock shed 16%, while a weak earnings report from US peer ServiceNow (NOW) also signaled a stutter for the sector.

Leaders Salesforce (CRM) and Workday (WDAY) lost 8.2% and 9.6% in the sell-off, while ServiceNow saw a loss of more than 11%.

In recent months, the software sector has struggled to make solid gains as investor attention focused on its members’ exposure to competition from AI-linked companies. Their products could supplant much of what service software companies provide.

US stocks began Thursday’s session trading mixed as the market reacted to the latest megacap tech earnings, with Apple’s (AAPL) report to come after the bell.

Meanwhile, gold (GC=F) and oil (BZ=F) both picked up gains as President Trump hardened his tone against Iran, while the dollar (DX-Y.NYB) slid.

The tech-heavy Nasdaq Composite (^IXIC) shed around 0.6%, while the blue-chip benchmark Dow Jones Industrial Average (^DJI) picked up roughly 0.4%. The S&P 500 (^GSPC) hovered right above flat.

Investors will be watching to see whether the S&P 500 can cross 7,000 again after Meta (META) shares surged over 8% in the first minutes of trading, thanks to a surprisingly strong quarterly revenue outlook.

Oil prices jumped more than 3% in morning trading on Thursday as investors priced in the risk of potential escalations in Iran and the Strait of Hormuz, the crucial shipping route Iran largely controls.

Futures on Brent crude (BZ=F), the international pricing benchmark, flirted with $70 a barrel, while those on the US benchmark West Texas Intermediate (CL=F) crude gained to trade above $65.

The gains add to a run-up over the past month that has seen oil pick up roughly 15% as geopolitical risk premiums and cold weather have buoyed prices even as global onshore crude stocks have remained elevated.

“We expected Brent below $60/BBL by now and trending towards the low $50 range. Instead, geopolitical risk premium and physical supply losses have created a strong floor,” Macquarie Group global energy strategist Vikas Dwivedi wrote in a recent note to clients.

Recent moves by the US military to position near Iran naval vessels and other equipment capable of striking inside the country have kept worries alive around potential disruptions to the Strait of Hormuz. The strait sees roughly 20 million barrels of oil, or a full quarter of global maritime oil trade, cross its waters every day. disruptions would have wide ripple effects on supply and pricing.

On top of the geopolitical risk, US commercial crude inventories in the US for the week ended Jan. 23 decreased by 2.3 million barrels from the previous week, according to data released Wednesday by the Energy Information Administration. Analysts at Macquarie had expected a growth of 900,000 barrels.

Media group Comcast (CMCSA) reported a loss in broadband customers in its fourth quarter earnings on Thursday. The decline missed analysts’ estimates and was driven by competitors offering consumers more cost-effective, aggressive offers.

The stock edged higher before the bell on Thursday.

Reuters reports:

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Las Vegas Sands (LVS) stock fell as much as 10% during premarket trading. The casino operator’s adjusted earnings fell short of analyst expectations.

Royal Caribbean (RCL) stock rose 6% before the bell on Thursday after the cruise operator’s 2026 earnings guidance beat Wall Street estimates.

Whirlpool (WHR) stock sank 10% during premarket hours today after reporting an unexpected decline in sales.

SAP (SAP) stock fell 15% before the bell on Thursday after reporting a cloud backlog and posting disappointing guidance.

The German firm said its cloud preorders reached $25 billion, but it missed analysts’ estimates by about 1%. The delay has been blamed on a few “mega deals” that are taking longer to get up and running.

Reuters reports:

Read more here.