U.S. stocks ended lower on Thursday, with tech stocks leading the decline as investors digested a batch of earnings from big tech companies and weighed Federal Reserve Chairman Jerome Powell’s hawkish comments from the previous day. All three major indexes ended in negative territory.

The Dow Jones Industrial Average (DJI) declined 0.2% or 109.88 points to end at 47,522.12 points.

The S&P 500 tumbled 1% or 68.25 points to close at 6,822.34 points. Consumer discretionary, communication services, materials and tech stocks were the worst performers.

The Technology Select Sector SPDR (XLK) lost 1.2%, the Consumer Discretionary Select Sector SPDR (XLY) lost 2.3%, while the Communication Services Select Sector SPDR (XLC) declined 1.7%. The Materials Select Sector SPDR (XLB) fell 1.3%. Eight of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq slid 1.6%, or 377.33 points, to finish at 23,581.14, snapping its three-day winning streak.

The fear gauge, CBOE Volatility Index (VIX), was up 0.06% to 16.91. Decliners outnumbered advancers on the NYSE by a 2.1-to-1 ratio. On the Nasdaq, a 1.98-to-1 ratio favored declining issues. A total of 20.32 billion shares were traded on Thursday, lower than the last 20-session average of 21.08 billion.

On the Nasdaq, there were 1,565 new highs and 3,095 new lows. On the NYSE, there were 177 new highs and 172 new lows.

The third-quarter earnings season is in full swing. Investors have been closely monitoring the quarterly results of industry bellwethers, as they have been deprived of economic data owing to the ongoing government shutdown.  

A slew of tech giants reported quarterly results on Wednesday after the closing bell, while a few were set to report earnings on Thursday after market close. Microsoft Corporation (MSFT), Alphabet, Inc. (GOOGL) and Meta Platforms, Inc. (META) reported quarterly results on Wednesday. On Thursday, shares of Meta and Microsoft ended 11.33% and 2.9% lower, respectively.

Microsoft reported a capital expenditure of almost $35 billion for its first-quarter fiscal 2026 and said that the spending would increase in the coming year. Meta also forecast a rise in capital expenditure in the coming year due to higher investments in artificial intelligence (AI).

Investors have been enthusiastic about the rapid growth in the AI arena but surging spending in the field has raised concerns in recent times. The increased spending outlook for both Microsoft and Meta unsettled investors, leading stocks of both companies to decline, despite an earnings beat.