NEW YORK (AP) — The worst day for Microsoft in years is yanking the U.S. stock market away from its all-time high on Thursday. Gold and silver prices, meanwhile, suddenly halted their jaw-dropping runs to records.
The S&P 500 sank 0.6% after flirting with its record high in the morning. The Dow Jones Industrial Average was down 112 points, or 0.2%, with an hour remaining in trading, and the Nasdaq composite was 1.4% lower.
Microsoft was the heaviest weight on the market by far, and the tech giant tumbled 12% 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.
Its stock is on track for its worst day since the market's COVID crash in 2020, and the S&P 500 would have been higher for the day if not for Microsoft.
Tesla also weighed on the market after falling 3.1%. 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 12% 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, slightly more stocks rose within the S&P 500 than fell. Leading them was Meta Platforms, which rallied 10.1% 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 3.7% after surpassing analysts’ expectations for profit and revenue. Southwest Airlines flew 18.1% 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 to its business like charging baggage fees and having assigned seating.
Some of the wildest action in financial markets was again for precious metals.
Gold’s price rallied near $5,600 per ounce in the morning before suddenly and briefly dropping back below $5,200. It settled at $5,354.80, up 0.6% from the prior day.
It was only on Monday that gold's price topped $5,000 for the first time, and it had nearly doubled over the last 12 months.
Silver, which has been zooming higher in its own feverish run, had a similar and sudden reversal of momentum before settling slightly higher.
Prices for precious metals have been surging as investors look for safer things to own while weighing a wide range of risks, including a U.S. stock market that critics call expensive, political instability, threats of tariffs and heavy debt loads for governments worldwide.
But safety can come at a price when it's really expensive. The huge runs for gold and silver raised criticism that their prices had gone too far, too fast and were due for a pullback. Bitcoin, which is pitched as a form of “digital gold,” also fell sharply. It sank 6% and dropped below $84,000.
The U.S. dollar has seen its value sink over the last year because of many of the same risks that drove gold's price higher, but the dollar held relatively steady against the British pound and euro Thursday.
Oil prices rose roughly 3.5% on worries about rising tensions between the United States and Iran, which could ultimately constrict the flow of crude. Defense Secretary Pete Hegseth warned the U.S. military “will be prepared to deliver whatever the president expects,” just a day after President Donald Trump told Iran to “make a deal” on its nuclear program.
In the bond market, the yield on the 10-year Treasury dipped to 4.23% from 4.26% late Wednesday.
The Federal Reserve decided Wednesday to at least pause cuts to its main interest rate. That was after the Fed cut rates three times in a row to close out 2025 in an attempt to shore up the job market.
Helping to keep the Fed on pause is the fact that inflation remains stubbornly above the central bank’s 2% target. Lower rates can worsen inflation. They could also further undercut the U.S. dollar’s value, which would help U.S. exporters.
Trump has been pushing aggressively for lower rates and once again on Thursday criticized the Fed's chair personally for being “too late” to cut.
In stock markets abroad, indexes rose across Asia and were more mixed in Europe.
South Korea’s Kospi climbed 1% for one of the world’s bigger moves, lifted to another record in part by chipmaker SK Hynix.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.