S&P 500 is dragged down by Meta and Microsoft, but Dow gains as investors rotate out of tech

The S&P 500 fell on Thursday as investors digested a batch of Big Tech earnings, while a meeting between President Donald Trump and Chinese President Xi Jinping concluded.

The broad market index dipped 0.5%, while the Nasdaq Composite dropped 1%. The Dow Jones Industrial Average outperformed, rising 96 points, or 0.1%.

Megacap tech giants Alphabet, Meta and Microsoft each reported quarterly results after market close Wednesday. While Alphabet shares popped about 4% on the back of strong results, shares of Meta and Microsoft tumbled 10% and 2%, respectively. Investors grew worried about the increased spending outlooks for both Meta and Microsoft.

The drop in Meta and Microsoft, as well as artificial intelligence chip giant Nvidia, marked a rotation out of technology stocks in the session. While those were lower, bank stocks such as JPMorgan and Bank of America saw gains, as did health-care stocks on the heels of Eli Lilly’s stronger-than-expected quarterly results and guidance raise. Shares of Eli Lilly were last up 3%.