U.S. stocks closed lower on Thursday as early gains faded, following the latest round of corporate earnings and economic data, as investors awaited results from megacaps Amazon and Apple due after the closing bell.

Market Snapshot

The Dow Jones Industrial Average fell 330.30 points, or 0.74%, to 44,130.98, the S&P 500 lost 23.51 points, or 0.37%, to 6,339.39 and the Nasdaq Composite lost 7.23 points, or 0.03%, to 21,122.45.

Market Movers

Microsoft - Microsoft was up 4% after the software company posted fiscal fourth-quarter earnings of $3.65 a share, better than Wall Street expectations of $3.37, as revenue of $76.4 billion rose 18% from a year earlier and beat analysts’ models of $73.6 billion.

Cloud revenue rose 27% in the quarter from a year earlier to $46.7 billion. Revenue for the Azure public-cloud business grew by 39% year over year, up from last quarter’s revenue growth of 33%.

Microsoft’s market capitalization briefly surpassed $4 trillion, but fell below that milestone later in the day, according to Dow Jones Market Data.

Meta Platforms - Meta Platforms jumped 11.3% after the parent company of Facebook and Instagram postedsecond-quarter earningsof $7.14 a share, smashing Wall Street forecasts of $5.88. Revenue jumped 22% to $47.5 billion and beat expectations. Daily users at Meta, ad impressions, and price-per-ad all exceeded Wall Street consensus. The company said it expects third-quarter revenue of $47.5 billion to $50.5 billion, higher than consensus of $46.3 billion.

Qualcomm - Qualcomm reported fiscal third-quarter adjusted earnings of $2.77 a share, beating analysts’ estimates of $2.71, and said it expects fourth-quarter adjusted profit of $2.75 to $2.95 a share versus consensus of $2.82. Revenue rose 10% to $10.37 billion as sales in the company’s equipment and services segment, which includes chips, rose around 11% to $8.89 billion. However, handsets revenue and automotive-sector revenue missed estimates. Shares of the maker of mobile processors and 5G wireless chipsets were down 7.7%.

Arm Holdings - Chip designer Arm Holdings was down 13.4% after posting fiscal first-quarter adjusted earnings of 35 cents a share, in line with consensus estimates. Revenue of $1.05 billion also matched expectations. For its current second quarter, Arm expects revenue in a range from $1.01 billion to $1.11 billion, while analysts estimate $1.06 billion.

Applied Digital - Applied Digital topped Wall Street estimates for quarterly revenue, buoyed by artificial intelligence-driven demand for its cloud infrastructure. Shares of the Dallas, Texas-based data center operator jumped more than 31%.

Carvana - Carvana‘s second-quarter earnings and revenue rose from a year earlier on higher car sales. The online used-car company said it sold a record 143,280 retail units in the quarter, up 41% from a year earlier. Shares jumped 17%.

CoreWeave - CoreWeave was up 10.9% to $114.13 after Tyler Radke of Citi Research upgraded the stock to Buy from Neutral and maintained a price target of $160, citing the durability of demand for artificial-intelligence computing. Strength in Microsoft’s Azure cloud-computing platform and large cloud announcements at Oracle have made Citi “incrementally more confident about the durability of AI demand and CRWV’s position in the market,” Radke wrote.

Roblox - Roblox jumped 10.3% after the gaming platform said second-quarter bookings, the company’s most closely watched metric, rose 51% from a year earlier and were well ahead of Wall Street consensus for 34% growth. Daily users rose 41% annually, and hours engaged climbed 58%. Roblox also issued guidance for the third quarter and year that were better than analysts’ projections.

eBay - eBay rose 18.3% after the online marketplace reported adjusted second-quarter earnings that beat Wall Street estimates as gross merchandise volume rose 6% on an as-reported basis to $19.5 billion.

Norwegian Cruise Line - Norwegian Cruise Line gained 9.2% after reporting second-quarter earnings in line with expectations amid healthy demand for its trips. “Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend,” said CEO Harry Sommer in a statement.

Lam Research - Lam Research fell 4.3% after the maker of semiconductor equipment reported fiscal fourth-quarter profit that rose from a year earlier as revenue jumped to $5.17 billion and beat forecasts. Adjusted earnings in the period of $1.33 a share were better than expectations of $1.20. Lam Research said it expects first-quarter earnings of $1.20 a share, plus or minus 10 cents, on revenue of $5.2 billion, plus or minus $300 million. Analysts forecast earnings of $1 a share and revenue of $4.65 billion.

Comcast - Comcast rose 2.3%. The cable and entertainment company topped Wall Street’s second-quarter earnings targets and said it lost fewer broadband subscribers than expected over the second quarter.

Align Technology - Align Technology sank 36.6% after second-quarter earnings missed analysts’ estimates. The maker of Invisalign said it believes the second quarter “was impacted in part by U.S. tariff turmoil in and outside of the U.S.and less affordable financing options for orthodontic treatment, as well as for capital equipment purchases.” The company also said it was seeing “patient hesitation toward elective procedures.”

CVS Health - CVS Health was down 0.3% even after the pharmacy and healthcare company posted solid second-quarter earnings and boosted its full-year outlook. CVS said it expects full-year adjusted earnings in the range of $6.30 to $6.40 a share, up from $6 to $6.20. The company also boosted its cash flow from operations guidance to at least $7.5 billion from roughly $7 billion.

Market News

Apple Revenue Forecast Beats Estimates as iPhone Sales Soar

Apple forecast revenue well above Wall Street’s estimates on Thursday, following strong June-quarter results supported by customers buying iPhones early to avoid U.S. President Donald Trump's tariffs.

Chief Financial Officer Kevan Parekh said the company expects revenue growth for the current quarter in the "mid to high single digits," which exceeded the 3.27% growth to $98.04 billion that analysts expected, according to LSEG data. The company's fiscal third-quarter sales beat expectations by the biggest percentage in at least four years, according to LSEG.

But CEO Tim Cook told analysts on a conference call that those tariffs had cost Apple $800 million in the June quarter and may add $1.1 billion in costs to the current quarter.

Amazon Cloud Computing Results Fail to Impress, Shares Sink

Amazon.com on Thursday forecast third-quarter sales above market estimates, but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations.

Shares fell by more than 7% in after-hours trading after finishing regular trading up 1.7% to $234.11. Both Google-parent Alphabet and Microsoft posted big cloud computing revenue gains this month.

AWS profit margins also contracted. Amazon said they were 32.9% in the second quarter, down from 39.5% in this year's first quarter and 35.5% a year ago. The second-quarter margin results were at their lowest level since the final quarter of 2023.

Design Software Maker Figma Surges 250% in Debut After $1.2 Billion IPO

Figma Inc. shares jumped 250% in their public debut after the design software maker and some of its shareholders raised $1.2 billion in an IPO, with the trading valuing the company far above the $20 billion mark it would have reached in a now-scrapped merger with Adobe Inc.

Shares of the San Francisco-based firm closed at $115.50 each on Thursday in New York, more than tripling the IPO price of $33 apiece. The trading gives Figma the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion, data compiled by Bloomberg show.

The first-day trading gives Figma a market value of $56.3 billion, based on the outstanding shares listed in its filings. Accounting for employee stock options and restricted stock units, and restricted stock units for Chief Executive Officer Dylan Field, which are subject to vesting conditions, the fully diluted value is roughly more than $65 billion.