Stocks are surging on the back of strong Big Tech earnings, with Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) leading the charge. The S&P 500 Index ($SPX) climbed +0.85%, the Dow Jones Industrial Average ($DOWI) rose +0.43%, and the tech-heavy Nasdaq 100 Index ($IUXX) jumped +1.37%. Investors cheered quarterly results from some of the largest technology companies, fueling renewed optimism in the markets.
June futures also reflected bullish sentiment: E-mini S&P futures (ESM25) rose +0.90% and E-mini Nasdaq futures (NQM25) increased +1.25%, suggesting continued enthusiasm around Big Tech earnings and their broader impact.
Microsoft and Meta Report Strong Quarterly Results
Microsoft shares surged over +9% after the company exceeded analyst expectations for Q3 revenue and earnings. The tech giant reported $70.07 billion in revenue, beating forecasts of $68.48 billion. Meta Platforms followed suit, climbing over +5% on the day after announcing Q1 revenue of $42.3 billion, surpassing the $41.4 billion consensus.
The strength of these Big Tech earnings underscores the resilience and continued growth of the sector, particularly in cloud computing, AI, and digital advertising—three areas investors are closely monitoring for long-term value.
Broader Market Sentiment Strengthened by Economic Data
A weaker-than-expected U.S. jobs report added to the bullish tone. Initial jobless claims rose to 241,000, their highest level in two months, while continuing claims reached 1.916 million. These labor market signals led to a drop in the 10-year Treasury yield, which fell to a 3.5-week low of 4.12%, further supporting equities by easing concerns over aggressive Federal Reserve policy.
Additionally, reports surfaced that the U.S. has reached out to China to restart tariff negotiations. These developments, when combined with strong Big Tech earnings, have helped drive the S&P 500 and Dow Jones Industrial Average to four-week highs, and the Nasdaq 100 to its best level in five weeks.
Other Market Movers Riding the Earnings Wave
The strong Big Tech earnings also lifted related sectors. Arista Networks (NYSE:ANET) rose over +7%, fueled by Meta’s increased AI infrastructure investment. Vertiv Holdings (NYSE:VRT), Dell Technologies (NYSE:DELL), and Applied Digital (NASDAQ:APLD) gained more than +2% each, buoyed by anticipated growth in AI-driven demand.
Meanwhile, IDEXX Laboratories (NASDAQ:IDXX) rallied over +9% after topping earnings estimates and raising its full-year forecast. Align Technology (NASDAQ:ALGN) and CVS Health (NYSE:CVS) also posted impressive gains following upbeat quarterly reports and improved outlooks.
On the downside, Qualcomm (NASDAQ:QCOM) dropped -8% after issuing weaker-than-expected Q3 revenue guidance. Beckton Dickinson & Co (NYSE:BDX) and Eli Lilly (NYSE:LLY) also declined following downward revisions to their full-year earnings forecasts.
What’s Ahead: More Big Tech Earnings and Economic Reports
With earnings season in full swing, all eyes are on upcoming results from other major players like Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL), both set to report later this week. Investors will also digest the April ISM manufacturing index, expected to fall to 48.0, and Friday’s nonfarm payroll report, projected at +130,000.
The focus on Big Tech earnings will remain central as investors gauge how these behemoths navigate economic headwinds, cost pressures, and geopolitical uncertainty. So far, the picture looks strong—at least for the biggest names in tech.
Conclusion
This week’s market rally highlights how influential Big Tech earnings are in shaping investor sentiment. Strong results from Microsoft and Meta provided the spark, but the broader lift across indices shows growing confidence in the sector’s continued dominance. As the earnings season progresses, the spotlight remains firmly on tech and its power to drive the market forward.
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