Microsoft Plunges 10% Post-Earnings; S&P, Nasdaq Close Lower Amid Fed Hold and Geopolitical Tensions

U.S. equities closed mixed Thursday (January 29, 2026), as Microsoft (MSFT-US) tumbled 9.99% after reporting slowing cloud growth and cautious guidance, dragging down software peers and tech indices. The Nasdaq fell 0.72%, and the S&P 500 declined 0.13%, while the Dow edged up 0.11%. Bitcoin dropped over 5% to a two-month low. Geopolitical risks flared as President Trump warned Iran of potential military action without a nuclear deal, pushing Brent crude above $70/barrel. The Fed held rates steady, with markets pricing in two 25-bp cuts by year-end—likely post-Chair Powell’s May term. Senate failure to pass funding legislation raised government shutdown risks by Saturday. Apple (AAPL-US) rose 0.72% and gained further in after-hours trading on record iPhone sales and AI acquisition news. Meta (META-US) surged 10.4% on strong revenue outlook and $135B data center investment plans.