Stocks go into reverse as Microsoft is said to cancel AI leases
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U.S. stocks fell on Monday morning after media outlets, citing a TD Cowen (TD-0.15%) report, said Microsoft (MSFT-1.90%) has canceled some leases for US data center capacity, pointing to a potential oversupply position.
The S&P 500 Index and the Nasdaq Composite all gave up early advances and declined, while the Dow Jones Industrial Average swung narrowly between gains and losses. Microsoft retreated.
Investors are also turning their attention to Nvidia’s upcoming earnings — the first time the AI chipmaker is reporting results since a breakthrough by Chinese AI startup DeepSeek sparked a selloff in Nvidia and other tech stocks last month.
This week is packed with earnings reports, starting Monday with Hims & Hers Health (HIMS-5.07%), followed by AMC Entertainment (AMC-0.87%) on Tuesday. Wednesday brings Nvidia (NVDA-1.29%), as well as Salesforce (CRM-1.14%) and Paramount (PARA+0.57%). Warner Bros. Discovery (WBD+0.60%) reports later in the week.
Beyond earnings, Friday will feature the release of the Personal Consumption Expenditures (PCE) Price Index, a key inflation gauge that tracks changes in consumer spending on goods and services.
