“Tech giants propel stock market to new heights as investors ride the wave of digital transformation.”
S&P 500 futures slipped on Tuesday night as investors digested quarterly results from tech giants Microsoft and Alphabet. Futures tied to the S&P 500 lost 0.1%. Nasdaq 100 futures fell 0.2%. Meanwhile, Dow Jones Industrial Average futures ticked up 40 points, or 0.1%.
Shares of Microsoft jumped more than 4% Tuesday after the bell following stronger-than-expected results in the fiscal first quarter. Investors were particularly optimistic on the company’s revenue growth, particularly from its Azure cloud segment. Meanwhile, Alphabet shares tumbled more than 6% as its cloud business missed analysts’ estimates, overshadowing its revenue growth and earnings beat.
The major averages all notched gains in the main trading session on the back of several strong corporate earnings reports. The Dow added more than 200 points, or 0.6%, to break a four-day losing streak. The S&P 500 and Nasdaq Composite gained 0.7% and 0.9%, respectively.
“We’re getting some mixed to positive results in aggregate from the earning season. So, I think we can get back to this Goldilocks period, where we can dream that they’re going to stop raising rates, and eventually there’ll be accommodation — and in the interim — growth,” Trivariate Research founder and CEO Adam Parker said on CNBC’s “Closing Bell” on Tuesday. “I think we’ll end up the year higher based on that.”
Traders will be keeping an eye on several more key quarterly reports during one of the busiest weeks of earnings season. Boeing will be posting its quarterly results Wednesday before the bell, followed by IBM and Meta in the afternoon.
During a relatively quiet week for economic data, Wall Street will look toward September’s building permits and new home sales numbers for insight into the housing market.