- The technology-heavy Nasdaq Composite pulled sharply off its record highs
yesterday in what became its worst day since March. Steep post-earnings slides
for key software names dragged the broader sector lower, as investors weighed
artificial intelligence’s threat to software companies’ business models.
• ServiceNow tumbled more than 17% for its worst day on record after
acknowledging headwinds from the Middle East conflict.
• IBM dropped more than 8% after holding guidance steady despite strong results
for its latest quarter.
• Tesla shares slipped more than 3% after the EV maker said spending this year
would be $5 billion more than it previously anticipated.
- Intel shares are also 27% higher this morning following a much
stronger-than-anticipated earnings report.
- Crude oil prices are lower this morning amid reports that Iranian negotiators
are heading to Pakistan, boosting investor hopes that U.S.-Iran peace talks
might resume.
- Microsoft announced on Thursday that it is offering voluntary buyouts to about
7% of its U.S. employees — a first for the company. The plans follow multiple
rounds of layoffs last year. Meanwhile, Big Tech peer Meta said it will cut
about 8,000 employees, or 10% of its workforce, and terminate hiring plans for
6,000 open roles.
