Thursday's Final Takeaways: Softness in Software & Productivity in Focus

• The software sector experienced a significant sell-off, with the IGV ETF down approximately 5% for the day and nearly 14% month-to-date, marking its worst month since October 2008.
• Microsoft (MSFT) and ServiceNow (NOW) saw double-digit declines despite posting better-than-expected earnings and guidance, attributed to slowing cloud growth and investor skepticism regarding AI's threat to traditional software.
• Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN) are reportedly in discussions to invest a combined $62-100 billion in OpenAI, potentially valuing the company at over $830 billion, reflecting intense interest and competition in AI.
• The U.S. trade deficit nearly doubled in November to $56.8 billion, with imports rising 5% and exports falling 3.6%, leading to a downward revision of the Atlanta Fed's GDP estimate.
• Looking ahead to Friday, key areas to watch include Exxon Mobil's (XOM) earnings, the market's reaction to Apple's (AAPL) earnings, and the performance of memory stocks and Apple's Asian suppliers.

Thursday's market saw a significant software sector sell-off, driven by concerns over AI's impact and slower cloud growth from major players. Concurrently, big tech giants are reportedly planning massive investments in OpenAI, signaling a strong belief in AI's future. Economic data revealed a near-doubling of the trade deficit, influencing GDP estimates, while earnings reactions are showing nuanced trends.