Tech Rally Boosts Markets: AI Bets Pay Off for Big Tech
The S&P 500 and Nasdaq futures hit record highs as Meta and Microsoft's strong earnings highlight successful AI investments. Big Tech stocks, including Amazon and Nvidia, showed gains. While Microsoft's Azure cloud sales exceeded expectations, Meta's AI-enhanced advertising bolstered its revenue forecast, signaling ongoing stock market growth.
The financial markets experienced a surge on Thursday as S&P 500 and Nasdaq futures reached unprecedented heights. The impressive earnings results from tech giants Meta and Microsoft highlighted the success of their substantial investments in artificial intelligence, driving investor optimism.
Meta Platforms saw a significant 12.3% rise in premarket trading. The social media titan's prediction of elevated third-quarter revenue, attributed to AI-driven improvements in its advertising segment, fueled this growth. Simultaneously, Microsoft presented a record $30 billion capital spending forecast, coupled with impressive sales figures in its Azure cloud computing division, leading to a 8.8% stock increase.
Other tech companies, including Amazon and Nvidia, also enjoyed positive momentum, contributing to Microsoft's projected $4 trillion market capitalization milestone. Concurrently, U.S. stock indexes continue to trend upward, spurred by recent trade agreements and the AI boom, promising robust monthly gains across the board.
(With inputs from agencies.)
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