Stock market today: Nasdaq leads sell-off after Microsoft, Meta earnings prompt Big Tech slide

The performance of Meta and Microsoft may lead to short-term bearish sentiment affecting the entire technology sector, particularly as they both indicate higher capital expenditures for AI, which could impact their profitability in the near term. The broader market's mood has been shaken, and upcoming earnings from other major tech players could reveal more concerning trends.

Despite the bearish trend post-earnings, analysts suggest that there might be a buying opportunity for Microsoft as they have a clear path to future revenue growth linked to AI demand. While the immediate reaction is negative, long-term potential remains strong depending on AI adoption rates.

Nvidia has faced significant selling pressure due to FOMO (fear of missing out) as growth expectations for AI semiconductors meet concerns about rising costs; thus it remains in a bearish light post-earnings, suggesting continued downward pressure in the short term.