The Big Tech rivals are spending more than ever, but analysts are more concerned about Microsoft at the moment.

By Sinéad Carew and Pranav Kashyap Jan 29 (Reuters) - Wall Street's main indexes fell on Thursday with technology-heavy Nasdaq leading declines as investors were rattled by the latest earnings reports and worried about whether hefty spending on artificial intelligence would pay off for mega‑cap tech companies.

A day of dramatic swings on Wall Street, including Microsoft's worst drop in years and a sudden reversal for the price of gold, finished with only relatively modest moves on Thursday.

Meta gains on earnings beat. Microsoft outlines Q3 revenue target amid accelerating AI cloud demand and Copilot seat growth. Tesla beats Q4 expectations, gives upbeat outlook.

Investing.com-- U.S. stock index futures edged down on Thursday evening after Wall Street closed largely lower, as disappointing earnings from Microsoft stirred fresh concerns about the payoff from hefty AI investments, while investors digested a barrage of other corporate results.

Shares of Microsoft are down 11.7% in Thursday trading after the company reported fiscal second-quarter results that beat Wall Street estimates but failed to satisfy investor expectations around Azure cloud growth and AI infrastructure spending.

There is no other stock within the S&P 500 that Wall Street is more bullish on.