US stocks fell lower on earnings reports and economic data as investors awaited the financial reports of Amazon and Apple.
Microsoft shares rose 3.5% after a strong earnings report and surpassed the $4 trillion market cap, becoming only the second company after Nvidia to reach that level.
Meta shares jumped 11.3% to a high of $773.44 after artificial intelligence (AI)-driven growth in its advertising business prompted higher revenue forecasts.
The Dow Jones Industrial Average fell 0.74% to 44,130.98 points, the S&P 500 fell 0.37% to 23.51 points, while the tech-focused Nasdaq fell 0.03% to 7.23 points.
In other developments, early economic data from the Commerce Department showed inflation rose in June due to new tariffs, while jobless claims remained steady, indicating the labor market remains strong.
Pharmaceutical stocks also fell after President Donald Trump urged 17 drug company CEOs to lower the cost of prescription drugs.
The NYSE Arca index fell 2.9%, its biggest drop since May 14, marking its fourth straight session of declines.
Investors are now awaiting the NFP report and tariff decisions on Friday when Trump is expected to impose higher tariffs on countries without a deal, despite Mexico being given a 90-day reprieve.
Volume on US exchanges was $19.65 billion, compared with an average of $18.01 billion over the full 20 trading days.
