By Pia Singh
Publication Date: 2026-01-28 23:05:00
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Jan. 28, 2026.
Brendan Mcdermid | Reuters
The S&P 500 fell on Thursday, bogged down by Microsoft, as traders reacted to the megacap technology name’s latest earnings results as well as the Federal Reserve interest rate decision.
The broad market index slipped 1.2%, while the Nasdaq Composite declined 2.3%. The Dow Jones Industrial Average dropped 213 points, or 0.4%.
Microsoft dragged down the benchmark with an 11% slide, which would be its worst day since March 2020. That’s after the “Magnificent Seven” member reported that cloud growth slowed in the fiscal second quarter. The company also issued soft guidance on operating margin for the fiscal third quarter.
A tumble in software stocks added to the losses, with as fears grew among investors that artificial intelligence would disrupt Microsoft’s business model. ServiceNow shares pulled back 12% even after better-than-expected earnings and revenue…
