The software company was alone responsible for more than two-thirds of the S&P 500's drop.

Revenue from the company’s cloud computing unit failed to meet analysts’ expectations.

"Magnificent Seven" companies Meta Platforms, Microsoft and Tesla posted earnings results after Wednesday's close.

The software company was alone responsible for more than two-thirds of the S&P 500's drop.

The drop comes amid stalling growth for its cloud computing software as OpenAI investments are questioned.

As investors sold shares of Microsoft on Thursday, the $3.22 trillion company dragged down the software complex and the S&P 500 index.

Microsoft's stock saw its biggest daily decline since 2020 on Thursday after investors were dismayed by its cloud computing business not growing enough.