US stocks end lower as Microsoft slide weighs on tech

US stocks closed in the negative territory on Thursday, pressured by losses in the technology sector after Microsoft tumbled and software stocks slipped into bear-market territory.

At the close, the Dow Jones Industrial Average rose 0.11%, or 55 points, to 49,071.

The broader S&P 500 fell 0.13%, or 9 points, to 6,969, while the Nasdaq Composite dropped 0.72%, or 172 points, to 23,685.

Microsoft shares plunged 10% to $433.50 after the company reported a slowdown in cloud-computing growth in the second quarter of its fiscal year and issued weaker-than-expected guidance for operating margins in the current quarter.

In Europe, the STOXX Europe 600 edged down 0.25% to 607.14, with the technology sub-index down 3.80%. Germany’s DAX slid 2% to 24,309. France’s CAC 40 was flat at 8,071, while Britain’s FTSE 100 rose 0.15% to 10,171.

In Asia, Japan’s Nikkei 225 closed flat at 53,375, while the broader Topix gained 0.30% to 3,545.

Oil prices climbed, with Brent crude futures for March rising 3.38%, or $2.31, to $70.71 a barrel, while WTI March futures advanced 3.50%, or $2.21, to $65.42.

Gold futures for February added 0.30%, or $14.8, to $5,318.40 an ounce, settling at a record high.

Market drivers:

Microsoft’s earnings stoked concerns over the outlook for the software sector, as rapid advances in AI raise questions about the durability of business models across the industry.