Microsoft Corp. fell sharply on Tuesday, with the software company leading a decline among megacap internet and technology stocks.
The shares fell about 4.1 per cent in their biggest intraday percentage decline since October 2020. The day’s drop erased more than $100 billion off its market valuation. Even with the decline, however, Microsoft remains up more than 45 per cent this year.
The day’s drop came on a broadly negative session for US stocks, a slump that follows the latest data on inflation and comes ahead of key central bank decisions, notably the US Federal Reserve, which is expected to pivot toward a more hawkish stance on Wednesday. The S&P 500 Index fell 1.1 per cent while the tech-heavy Nasdaq 100 dropped 1.8 per cent.
Among other notable names, Alphabet Inc. sank 2.9 per cent, Amazon.com Inc. declined 1.6 per cent, and Meta Platforms Inc. fell 1.4 per cent. Apple Inc. fell 1.4 per cent despite an upgrade from Bank of America.