Microsoft Shares Plunge as AI Spending Fears Push Software Into Bear Market

Microsoft shares plunged nearly 12 percent on Thursday after reporting slowed cloud growth and massive capital expenditures, leading a broader software industry decline into bear market territory.The market volatility followed a surge in Meta stock after the company exceeded sales forecasts, while software firms like ServiceNow saw shares drop despite positive earnings.Meanwhile, semiconductor equipment manufacturer ASML projected record sales for 2026 as the company continues to dominate the production of machines essential for the artificial intelligence hardware buildout.