Volatility returned to Wall Street Thursday, the session after the Federal Reserve meeting, but this time the selloff was less macro-driven and more stock-specific.

By midday trading in New York, major tech-heavy indices were sharply lower, weighed down by a historic drop in Microsoft Corp. (NYSE:MSFT) whose outsized index weight amplified losses across benchmarks.

Microsoft shares plunged 12%, marking their worst session since March 18, 2020.

The stock fell despite beats on earnings and revenue, as investors focused on slowing Azure cloud growth and cautious guidance, with investors now questioning the pace of AI monetization. The selloff erased roughly $400 billion in market capitalization.

The S&P 500 dropped 1% to 6,900 points, while the Nasdaq 100 erased 300 points or 1.6%. The Dow Jones and the Russell 2000 were less affected given their relative underweight in tech.

Chart: Microsoft On Track For Worst Day Since 2020’s Lockdown Shock

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International Business Machines Corp. (NYSE:IBM) climbed 6% after delivering better-than-expected quarterly results and guidance, standing out in an otherwise weak session for large-cap technology stocks.

German software giant SAP SE (NYSE:SAP) cratered 16% after disappointing results and outlook weighed on sentiment across enterprise software.

Las Vegas Sands Corp. (NYSE:LVS) sank 13.5% after issuing weak guidance tied to softer trends in Macau.

Gold And Silver Cool, Copper And Oil Move Higher, And Bitcoin Sinks

Commodity markets cooled after hitting extreme levels overnight.

Gold tumbled 3% to $5,250 after topping at nearly $5,600 earlier, while silver slid 4% to $112.

Copper and oil bucked the trend. Copper gained 2.5% to a fresh record at $6.20 a pound, while WTI crude climbed 3.5% above $65 a barrel, the highest level since last August.

Selling pressure intensified in crypto markets. Bitcoin (CRYPTO: BTC) fell 5% to $85,000, on track for its worst session since mid-October.

According to Benzinga Pro data:

Russell 1000's Top 5 Gainers And Losers On Thursday

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