Microsoft just had its worst day in years—here's what happened
Business
On January 29, 2026, Microsoft's stock dropped 10%, erasing $357 billion in value—their second-biggest single-day loss ever.
To put it in perspective, that's just lower than the combined worth of HDFC Bank, ICICI Bank, and SBI.
Why does this matter?
This was Microsoft's worst trading day since the pandemic crash in 2020.
Shares fell intraday before closing at $433.5—a major drag on the S&P 500 that day.
What caused the tumble?
Even though Microsoft reported solid Q2 numbers—$81.3 billion revenue (up 17%) and a big jump in earnings per share—investors were let down by Azure cloud growth coming in below expectations, despite capital expenditures rising to $37.5 billion and increased spending on AI infrastructure.