S&P 500: Tech Stocks Struggle as Microsoft Drops, Meta and Tesla Shine

Microsoft shares tumbled more than 6% after the company projected weaker growth in its cloud segment, raising concerns about slowing enterprise demand. Other tech heavyweights, including Apple and Intel, are set to report after the closing bell.

Which Sectors Are Leading the Market?

Ten of the 11 S&P 500 sectors traded higher, led by a 2.1% jump in communication services, fueled by Meta’s strong performance. Technology stocks lagged, down 0.5%, weighed by Microsoft’s post-earnings decline. Meanwhile, semiconductor stocks saw strong gains, with Broadcom rising 5.8% and Marvell Technology up 3.8%. The Philadelphia Semiconductor Index advanced 1.4%.

The Russell 2000 index, a key gauge for small-cap stocks, outperformed with a 1.3% gain.

What Are the Biggest Stock Movers?

Health insurer Cigna dropped 9.7% after issuing a weaker-than-expected annual profit forecast and missing fourth-quarter estimates. United Parcel Service plunged 14.8% after providing disappointing 2025 revenue guidance.