ASX to Decline as Microsoft’s Impact Hits Wall Street; Apple Results Awaited

The recent performance of the U.S. stock market has been significantly influenced by Microsoft’s unexpected downturn. On Thursday, Wall Street faced its worst day in years, as Microsoft shares plunged by 12%. Despite reporting stronger-than-expected profits and revenues, investor concerns about rising costs and competitive pressures in its Azure and AI sectors drove the stock lower.

Wall Street’s Decline

The S&P 500 index dropped by 1% after nearing an all-time high earlier in the day. The Dow Jones Industrial Average fell by 113 points, marking a 0.2% decrease. Meanwhile, the Nasdaq composite index decreased by 1.9%. Such declines signal worrying trends amidst fluctuating sentiments in the market.

Impact of Major Companies

Microsoft’s steep decline, the largest since the COVID-19 crash in 2020, accounted for over two-thirds of the S&P 500’s drop. Other notable performances included:

• Tesla’s stock fell by 2.3%, despite exceeding quarterly profit expectations. The results, however, were substantially lower compared to the previous year.
• ServiceNow reported a stronger profit than analysts predicted but still saw an 11.8% drop in stock value.
• Meta Platforms rallied by 8.6% after surpassing profit expectations while committing to ongoing AI investments.
• IBM’s stocks increased by 6% due to better-than-expected profit and revenue.
• Southwest Airlines saw a remarkable 15.4% rise despite missing profit forecasts, buoyed by an optimistic earnings outlook for 2026.

Precious Metals Market Reaction

In the metals market, gold prices experienced significant volatility. It initially surged to around $5,600 per ounce before briefly retreating below $5,200. Currently, gold is trading at approximately $5,286.90, representing a 1% drop. Silver also faced similar price fluctuations amid concerns over excessive valuation following a year of sharp increases in both metals.

Global Economic Indicators

The U.S. dollar managed to maintain stability against other currencies, even as it faced pressure. The yield on the 10-year Treasury note decreased to 4.24%, down from 4.26% on Wednesday. This dip comes after the Federal Reserve paused interest rate cuts, following three rate reductions in late 2025 to support the job market.

Internationally, stock markets showed a more positive trend. Asian and European indices rose, with South Korea’s Kospi gaining 1%, significantly attributed to advances by key companies like SK Hynix. This reflects diverse economic conditions across global markets.

Conclusion

Investors are currently navigating a complex landscape shaped by corporate results and broader economic indicators. With major firms like Microsoft influencing market dynamics, attention will remain on upcoming earnings reports, especially from tech giants like Apple, which may further impact Wall Street’s trajectory.