^GSPC Today, January 31: Microsoft Rout Drags S&P 500, Tech Slips
S&P 500 today slipped as a Microsoft selloff rattled tech and kept risk appetite in check. The benchmark ^GSPC hovered near 6,923, down about 0.78%, with traders eyeing Apple results after the bell. Mixed earnings added to the choppy tone, with Meta and IBM firmer while chip names lagged. For Australian investors, the focus is how Wall Street’s tech wobble could shape the ASX open and sector leadership, especially for local ETFs tied to US mega-cap momentum and the Aussie dollar’s swings.
Wall Street snapshot and levels
S&P 500 today traded near 6,923.91, off 0.78% on the session. The day’s range ran 6,910.36 to 6,964.09, with the index still above its 50-day average at 6,847.63 and well over the 200-day at 6,413.29. The year high sits at 7,002.28, a nearby ceiling to watch. Intraday action stayed choppy as investors rebalanced into month end and waited for fresh guidance from mega-cap earnings.
Tech led declines, paced by the Microsoft selloff, while defensives and select energy names steadied the tape. Communication services held up on strength in a few mega-caps, with Meta and IBM firming despite a softer backdrop. Nasdaq declines signalled reduced risk appetite in growth pockets, but breadth outside large tech was mixed rather than outright weak. For S&P 500 today, leadership rotation remained the key intraday theme.
Big tech moves: Microsoft, Apple, and peers
The Microsoft selloff deepened as investors weighed AI capex concerns and possible margin pressure. Local coverage highlighted sharp valuation swings tied to budget signals across big tech, feeding a flight from winners to cash and defensives. See reporting on Wall Street weakness and AI budget worries from the Canberra Times source. For S&P 500 today, that pressure on mega-cap tech drove most of the index’s downside.
Attention turned to Apple’s results due after the close, with traders focused on iPhone demand, services growth, and capital plans. Options positioning may amplify moves if guidance surprises either way. For S&P 500 today, a clean report could steady tech sentiment, while a cautious tone might extend rotation toward value, energy, and quality income plays into the next session.
What it means for Australian investors
Australian equities faced a softer tone as Wall Street wobbled. Local media flagged an early dip risk for the ASX as Microsoft weighed on US tech and traders waited on Apple. See The Age’s market wrap for context source. For S&P 500 today watchers, weak US tech often flows into local tech, while energy and defensives can buffer the downside.
For Australians, consider USD exposure within global equity funds and tech-heavy ETFs. If Nasdaq declines persist, trimming concentration risk or adding to quality value and dividends can smooth volatility. Keep cash levels aligned with plan, not headlines. For S&P 500 today signals, watch whether rotation sustains toward sectors that typically hold up better when rate and earnings uncertainty rise.
Technical view and near-term scenarios
Momentum indicators stayed constructive but not stretched. RSI near 57 suggests moderate strength, while ADX around 12 points to a weak trend. First support tracks the 20-day zone near the Bollinger middle band around 6,866, with resistance near 6,980 to 7,002. ATR near 59 hints at normal daily swings. For S&P 500 today, a close above 6,980 would improve tone; below 6,866 tilts cautious.
Apple’s commentary on demand and spending will steer tech. We also watch follow-through in mega-caps tied to AI capex concerns. Model baselines point to roughly 6,882 on a monthly view and about 6,459 on a quarterly view, framing risk if weakness extends. For S&P 500 today, confirmation from breadth and leadership will matter more than a single headline move.
Final Thoughts
S&P 500 today reflects a market adjusting to heavier scrutiny on big tech spending and earnings guidance. Microsoft’s slide pulled growth lower, while interest turned to Apple’s update to set the next cue. Key levels are clear: support near 6,866 and resistance around 6,980 to 7,002. For Australians, expect US-led tech softness to echo on the ASX, with defensives and energy providing balance. We would keep portfolios diversified, review position sizes in concentrated tech exposures, and avoid reacting to one print. Let the post-earnings tone and sector breadth confirm direction before making bigger moves.
FAQs
Why did the S&P 500 fall today?
S&P 500 today slipped mainly because tech weakened. A Microsoft selloff on AI capex concerns hit mega-cap sentiment and pulled growth lower. Investors also waited for Apple’s results, which kept risk light. Outside tech, moves were more mixed, with defensives steadying and energy selective rather than strong.
How does Microsoft’s selloff affect the index?
Microsoft is a large S&P 500 weight, so big price swings have an outsized impact. When Microsoft falls on AI spending worries, other mega-cap tech often follows. That drags the overall index, narrows breadth, and can push investors toward value, dividends, and cash until earnings or guidance ease the concern.
What should Australian investors watch tonight?
Watch Apple’s results and guidance on demand, services, and capital plans. If tone is upbeat, tech may stabilise; if cautious, rotation to defensives could extend. Track key S&P 500 levels around 6,866 and 6,980. Also monitor the Aussie dollar, as currency moves can sway local returns on US assets.
Is this pullback a buying opportunity?
It can be, but timing matters. Look for evidence that selling is slowing, such as holds above support near 6,866 and improving breadth. Consider scaling in rather than going all-in. Focus on quality names and diversified ETFs. If Nasdaq declines continue, patience and staged entries can reduce regret.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
