Risk aversion swept across markets on Thursday as investor disappointment over third-quarter tech earnings triggered the steepest drop in major U.S. indices in nearly two months.

Microsoft Corp. (NYSE:MSFT) plummeted over 5% by midday trading in New York, on track for its worst session in two years. Although the company surpassed earnings estimates, it forecasted slower growth in its Azure cloud business, dampening future revenue expectations.

Meta Platforms Inc. (NASDAQ:META) also declined by over 4% despite a strong quarterly performance, as the social media giant projected "significant" capital expenditure growth next year, particularly for AI infrastructure.

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