Stock indexes closed mostly lower on Thursday, with the S&P 500 and Dow Jones at 1-week lows. Microsoft’s -10% plunge due to AI spending fears impacted the market. Meta Platforms’ 10% surge boosted the market with strong revenue outlook. IBM and Honeywell’s positive earnings pushed the Dow into positive territory after a week low.

WTI crude oil prices jumped over 3% to a 4.25-month high. President Trump’s comments on Iran negotiating a nuclear deal lifted energy producers. Weekly initial unemployment claims fell by 1,000, but continuing claims hit a 6-month low. The US Nov trade deficit widened to -$56.8 billion, the largest in 4 months.

Stocks recovered on news of a potential government funding deal. Euro Stoxx 50 fell, while China’s Shanghai Composite rose. US Nov factory orders increased by +2.7% m/m. Threats to stocks and the dollar persist with potential new tariffs and a looming government shutdown.

Earnings season continues with Q4 reports. Microsoft led Dow losers by -10%, while Meta Platforms and IBM gained. Southwest Airlines soared +18% on strong Q1 forecast. Cryptocurrency stocks like Coinbase fell due to Bitcoin’s decline. Other notable movers include Las Vegas Sands, United Rentals, and Tractor Supply Co.

Read more at Nasdaq: Microsoft Rout Weighs on the Broader Market