Tech stocks experienced a significant selloff following disappointing earnings outlooks from major companies like Meta and Microsoft. While both companies exceeded some earnings expectations, their projections for future revenue caused concern among investors. Microsoft forecasted Q4 revenues to be between $68.1 billion and $69.1 billion, below Wall Street's expectation of $69.83 billion. Meta reported improved earnings per share and revenue but indicated capital expenditures would increase significantly, expecting costs up to $40 billion for 2025. The broader market also faced pressure from lackluster earnings across various sectors, including companies like Uber and eBay, compounded by economic data suggesting prolonged higher interest rates. This selloff affected major indexes, with the Nasdaq Composite dropping 1.8% and the S&P 500 falling 1.2% on Thursday, although there was a slight recovery noted on Friday morning.

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