Stocks slid on Thursday as Wall Street digested discouraging quarterly reports from megacap technology names and awaited further results.

The S&P 500 tumbled 1.6%, while the Nasdaq Composite lost 2.4%. Both indexes are on track for a second straight day of declines. The Dow Jones Industrial Average slid 425 points, or 1%.

Microsoft shares slid 6% after the tech giant’s revenue guidance disappointed investors and overshadowed a quarterly earnings beat. Meta Platforms dropped more than 3% after the Facebook parent missed the Street’s expectations for user growth and warning that capital expenditures will significantly rise in 2025. To be sure, Meta managed to beat on both top- and bottom-lines in the third quarter.

“I think we’re getting to the point where AI enthusiasm and potential is not enough. These companies, while they’re still levered to those themes and hold favorable long term growth profiles, are not quite delivering the growth that is priced into them,” said Ross Mayfield, investment strategist at Baird Private Wealth Management.

Big tech earnings so far this week have been a mixed bag. While Alphabet shares rose nearly 3% on Wednesday after the company reported strong revenue growth, chipmaker AMD fell more than 10% as investors were disappointed by the company’s guidance for the fourth quarter.

Tech earnings continue on Thursday with results from megacap stocks Apple and Amazon due after the bell.

The latest personal consumption expenditures price index showed 12-month inflation rose at a rate of 2.1% in September, arriving inline with estimates and moving closer to the Federal Reserve’s 2% target. The PCE reading is the Fed’s preferred inflation gauge.

Thursday’s PCE reading, along with Friday’s October payrolls report and unemployment data, will inform the Fed’s interest rate decision on Nov. 7 when it ends its two-day policy meeting.

Heightened uncertainty ahead of the U.S. presidential election on Nov. 5. has introduced elevated volatility in the markets. The CBOE Volatility Index, known as Wall Street’s “fear gauge,” topped 23 on Thursday.

The major averages are on track to end the week in the red. The Dow has dropped 0.9% week to date, while the S&P 500 and Nasdaq are down 1.5% and 2%, respectively.

Correction: An earlier version misstated a move in Alphabet shares.