<div id="readability-page-1" class="page">Both the S&amp;P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed lower on Thursday as tech and software stocks sold off sharply.<h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential</li></ul> Microsoft (MSFT) closed with a 9.9% loss despite reporting higher-than-expected revenue and adjusted earnings per share (EPS) for the period ended December 31. Microsoft joined a broad selloff in software stocks, with ServiceNow (NOW), Salesforce (CRM), and Workday (WDAY) also posting steep drawdowns. Investors remain concerned about the disruptive effects of AI that could potentially intensify competition in the software space and lower margins. During a Cabinet meeting, President Trump said that he would announce his nominee for the Fed Chair position &#34;sometime next week.&#34; Trump ramped up criticism of Fed Chair Jerome Powell after the central bank voted 10-2 on Wednesday to hold rates steady between 3.50% and 3.75%. Powell's term is set to end on May 15, although his term as a Governor will last until January 31, 2028. &#34;He is hurting our Country, and its National Security,&#34; Trump said in a Truth Social post on Thursday. &#34;We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat.&#34; BlackRock's (BLK) Rick Rieder is the front-runner to be nominated by Trump to lead the Fed, according to prediction platform Polymarket. Rieder holds 38% odds, followed by former Fed Governor Kevin Warsh at 30% and current Fed Governor Christopher Waller at 14%. Before the market open, the Department of Labor (DOL) announced that initial jobless claims fell by 1,000 to 209,000, above the consensus estimate of 205,000. In addition, the DOL revised the prior week's claims to 210,000 from 200,000. Initial jobless claims are an indicator of layoffs and track how many people have applied for unemployment benefits for the first time. The data comes after Amazon (AMZN) announced it would lay off 16,000 employees, bringing its total since October to 30,000. Continuing jobless claims, which trail initial claims by one week and track the number of people continuing to receive unemployment benefits, fell by 38,000 to 1.827 million and were below the estimate of 1.850 million. However, the DOL revised the prior week's figure to 1.865 million from 1.849 million. Elsewhere, the U.S. trade deficit for November nearly doubled to $56.8 billion from $29.2 billion in October, driven by a 5% rise in imports to $348.9 billion. Rising imports are a headwind to gross domestic product (GDP), as they reduce net exports. The S&amp;P 500 (SPX) closed with a 0.13% loss, while the Nasdaq 100 (NDX) fell by 0.53%. Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.</div>

Both the S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) closed lower due to a selloff in tech stocks, with Microsoft (MSFT) down 9.9% despite strong earnings. President Trump plans to announce his Fed Chair nominee next week, criticizing Jerome Powell. Initial jobless claims fell to 209,000, while the U.S. trade deficit nearly doubled to $56.8 billion. The S&P 500 and Nasdaq 100 closed down 0.13% and 0.53%, respectively.

- The S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) fell on Thursday due to a significant selloff in tech stocks, including Microsoft, which dropped 9.9% despite strong revenue numbers.  
- Investors are worried about AI's potential impact on competition and profit margins in the software sector, while jobless claims data and rising imports contribute to economic concerns.  
- President Trump announced he would nominate a new Fed Chair next week, with Rick Rieder from BlackRock as the predicted frontrunner amid rising criticism of the current chair, Jerome Powell.

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Stock Market Today: SPY, QQQ Lose Steam on Tech Weakness as Trump Prepares Fed Chair Pick