S&P 500, Nasdaq Dip as Microsoft Slides on AI Spend; Apple Earnings Awaited

U.S. stocks declined Thursday, January 29, 2026, with the Nasdaq falling 0.7% and S&P 500 down 0.2%, as Microsoft shares plunged over 10% following its earnings report highlighting elevated AI-related capital spending and slowing cloud growth. Meta shares rose over 10% on strong revenue guidance and a $135B data center investment plan. Tesla dropped 3% despite an earnings beat, posting its first annual revenue decline amid strategic pivot to robotics. Investors await Apple’s after-hours earnings. Geopolitical tensions flared as President Trump warned Iran of potential military action, pushing Brent crude above $70. The Fed held rates steady; markets price in two 2026 cuts, but easing may not occur before Powell’s May exit.