The Globe and Mail reports in its Friday edition that major stock indexes dropped sharply on Thursday as Microsoft and Meta flagged rising artificial-intelligence costs that could impact earnings. The Globe's Darcy Keith writes that this negative sentiment also affected Canada, where the S&P/TSX Composite Index experienced its worst session in three months, falling 1.4 per cent and erasing much of its October gains, with tech stocks hit hardest. Apple reported a decline in quarterly net income due to a one-time tax charge in Europe, leading to a 2-per-cent drop in its shares. In regular trading, shares of Meta dropped 4.1 per cent and Microsoft fell 6 per cent, even though both companies beat earnings estimates. Alphabet's shares also declined. Microsoft and Meta noted that rising capital expenses from AI investments could impact profitability. BMO's Carol Schleif says: "You had three of the Magnificent Seven all say they basically have open-ended budgets for AI spend, and investors don't like to hear that. The intermediate and longer-term implications of this build-out are really important for U.S. long-term growth and long-term productivity. ... In the short run, investors are asking where's the profit from it?"