LIVE MARKETS-Still bleeding

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STILL BLEEDING

U.S. stocks closed sharply lower on Thursday, dragged down by heavyweights such as Microsoft MSFT.O and Amazon.com AMZN.O as AI concerns continue to plague stocks, especially among software names, in the wake of results from Alphabet GOOGL.O.

Alphabet shares ended down 0.5%, though well off its lows that saw the stock drop as much as 8% after the Google parent said after the close on Wednesday that capital expenditure could as much as double this year as it continues to jockey for position in the AI race. Amazon.com shares closed the session down more than 4% and plunged about 9% in extended trade after reporting earnings and projecting $200 billion in capital spending this year.

Investors have been concerned in recent weeks over the massive spending by companies as they compete to become leaders in the growing technology, while other technology-related areas, such as software, have been pummeled by concerns that AI will emerge as a strong competitor, or replacement, for their businesses.

The S&P 500 software and services index .SPLRCIS has fallen for seven consecutive sessions, its longest streak of declines since a seven-session drop that ended in early November. The index has collapsed 17.4% over that timeframe, its biggest seven-session drop since March 2020, while the S&P 500 tech sector .SPLRCT is now down 12.7% from its October 29 record close, putting it firmly in correction territory.

Outside of tech, a 7.8% fall in Eli Lilly LLY.N also applied downside pressure, after online telehealth company Hims and Hers HIMS.N began offering a much cheaper $49 compounded version of Novo Nordisk's NOVOb.CO new Wegovy weight-loss pill, which could also undercut Lilly's plans for its weight loss drug.

Selling was broad, with declining issues outnumbering advancers by a 2.23-to-1 ratio on the NYSE and by a 3.26-to-1 ratio on the Nasdaq. The CBOE Volatility index .VIX closed at 21.77, its highest close since November 21.

(Chuck Mikolajczak)

EARLIER ON LIVE MARKETS:

BUYING OPPORTUNITIES SEEN IN SOFTWARE STOCKS CLICK HERE

CONSTRUCTIVE ENVIRONMENT FOR STOCKS BUT RISKS REMAIN - IMPAX CLICK HERE

AI CAN BE A GOLDEN TICKET ON THE RIDE TO HIGHER EARNINGS GROWTH CLICK HERE

CYBERSECURITY FIRMS MAY BE IMMUNE TO AI DISRUPTION AMID SOFTWARE SELL-OFF CLICK HERE

US STOCKS LOWER AS MEGACAPS WEIGH CLICK HERE

NASDAQ COMPOSITE TECHNICAL DAMAGE INTENSIFIES CLICK HERE

CASE FOR ECB EASING RATES NOT YET PROVEN, SAYS DEUTSCHE BANK CLICK HERE

AI WON'T EAT CYBERSECURITY, SAYS BERENBERG CLICK HERE

SOFTWARE BREATHES, MINERS SLUMP, BANKS MIXED CLICK HERE

BEFORE THE BELL: CENTRAL BANK DAY IN EUROPE, EARNINGS RUMBLE ON CLICK HERE

SKITTISH INVESTORS HAUNTED BY TECH SELL-OFF CLICK HERE