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Microsoft Loses $100 Billion in Value After Inflation Data

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(Bloomberg) -- Microsoft Corp. fell sharply on Tuesday, with the software company leading a decline among megacap internet and technology stocks.

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The shares fell about 4.1% in their biggest intraday percentage decline since October 2020. The day’s drop erased more than $100 billion off its market valuation. Even with the decline, however, Microsoft remains up more than 45% this year.

The day’s drop came on a broadly negative session for U.S. stocks, a slump that follows the latest data on inflation and comes ahead of key central bank decisions, notably the U.S. Federal Reserve, which is expected to pivot toward a more hawkish stance on Wednesday. The S&P 500 Index fell 1.1% while the tech-heavy Nasdaq 100 dropped 1.8%.

Among other notable names, Alphabet Inc. sank 2.9%, Amazon.com Inc. declined 1.6%, and Meta Platforms Inc. fell 1.4%. Apple Inc. fell 1.4% despite an upgrade from Bank of America.

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©2021 Bloomberg L.P.

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