US sharemarkets finished Thursday’s session mixed, with losses in technology offset by strength in parts of the industrial sector. The S&P 500 slipped 0.13% to close at 6,969.01, while the Nasdaq Composite fell 0.72% to 23,685.12. The Dow Jones Industrial Average rose 0.11%, adding 56 points to finish at 49,071.56. Markets also digested the Federal Reserve’s interest rate decision, which offered little relief for rate-sensitive growth stocks.
Microsoft sparks sell-off across software stocks
Technology shares came under pressure after Microsoft fell about 10%, marking its worst session since March 2020. The stock dropped after the company reported slower cloud growth in its fiscal second quarter and issued weaker-than-expected guidance on operating margins. The decline reignited investor concerns about heavy capital spending on artificial intelligence and the pace of monetisation.
Losses spread quickly across the software sector. ServiceNow slid around 10% despite beating earnings expectations, while Oracle and Salesforce fell 2% and 6% respectively. The iShares Expanded Tech-Software Sector ETF dropped roughly 5%, pushing it into bear market territory, nearly 22% below its recent high.
Winners buck the trend
Not all megacaps struggled. Meta Platforms jumped more than 10% after delivering a stronger-than-expected revenue outlook, with markets welcoming signs that higher investment spending is translating into faster growth. Outside technology, Caterpillar gained more than 3% after reporting a solid quarterly result.
Volatility across commodities and crypto
In other markets, oil prices settled above US$70 a barrel for the first time since July. Gold prices were volatile, while Bitcoin fell more than 5%, sliding to its lowest level in almost two months as risk appetite weakened.
Washington uncertainty adds to caution
Political uncertainty also lingered, after the US Senate failed to advance a government funding package. Without progress, parts of the federal government face a shutdown from Saturday, adding another layer of risk for investors.
Australian market outlook
Australian shares are set to open higher, with ASX 200 futures pointing up 33 points, or 0.37%, at 8,922. Attention turns to a busy earnings calendar, with updates due from Origin Energy, ResMed, Atlas Arteria Group and Champion Iron. Offshore, attention shifts to earnings from ExxonMobil and Chevron ahead of the US open on Friday. On the data front, Japan will release Tokyo inflation and industrial production figures, Europe is due to publish fourth-quarter GDP, and US producer prices are scheduled for release early Saturday AEDT.
