Nasdaq +1.5%: big tech earnings boost optimism despite tariff worries
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The Nasdaq Composite rallied on Thursday, gaining 1.5% as investor sentiment turned positive following a fresh round of Big Tech earnings that showed continued resilience in top-line growth and cloud infrastructure demand. After several sessions of subdued performance, the tech-heavy benchmark reasserted leadership, driven by strong results from Microsoft and Meta, despite lingering macro concerns related to trade tensions.
The broader U.S. equity complex also benefited from the earnings tailwind. The S&P 500 climbed 0.6%, marking its seventh consecutive session of gains, while the Dow Jones Industrial Average rose a more modest 0.2%. Although the performance of tech giants was mixed, investor response leaned bullish in early session trading as positive surprises on both revenue and margins helped dispel some of the gloom from recent macroeconomic data.
Meta Platforms delivered solid results, with a 4.2% gain in its stock price after the company raised its capital expenditure outlook—pointing to an acceleration in AI infrastructure spending. Microsoft stood out with a 7.6% surge, supported by stronger-than-expected cloud segment performance. Azure posted a 33% year-on-year revenue increase, while CEO Satya Nadella highlighted sustained demand for enterprise cloud services and data center expansion as key drivers.
However, post-market reactions to earnings from Amazon and Apple were more cautious. Amazon reported a 9% rise in quarterly revenue to $155.7 billion, but its forward guidance flagged the potential impact of U.S. tariffs, which could weigh on its Q2 results. Apple also acknowledged the headwinds, estimating that tariffs targeting Chinese imports could reduce its current-quarter performance by approximately $900 million. While iPhone sales rose 2%, driven partly by pre-tariff consumer demand, shares came under pressure in after-hours trading.
Despite tariff concerns resurfacing, the tone in Thursday’s session was clearly driven by earnings resilience, particularly from firms with strong exposure to cloud, AI, and enterprise IT spending. Investors will now watch closely whether this momentum can hold in the face of potential policy volatility and further guidance revisions. For the Nasdaq, the session marks a return to leadership, but questions remain over how sustainable this tech-driven rally can be under tightening trade conditions.
The broader U.S. equity complex also benefited from the earnings tailwind. The S&P 500 climbed 0.6%, marking its seventh consecutive session of gains, while the Dow Jones Industrial Average rose a more modest 0.2%. Although the performance of tech giants was mixed, investor response leaned bullish in early session trading as positive surprises on both revenue and margins helped dispel some of the gloom from recent macroeconomic data.
Meta Platforms delivered solid results, with a 4.2% gain in its stock price after the company raised its capital expenditure outlook—pointing to an acceleration in AI infrastructure spending. Microsoft stood out with a 7.6% surge, supported by stronger-than-expected cloud segment performance. Azure posted a 33% year-on-year revenue increase, while CEO Satya Nadella highlighted sustained demand for enterprise cloud services and data center expansion as key drivers.
However, post-market reactions to earnings from Amazon and Apple were more cautious. Amazon reported a 9% rise in quarterly revenue to $155.7 billion, but its forward guidance flagged the potential impact of U.S. tariffs, which could weigh on its Q2 results. Apple also acknowledged the headwinds, estimating that tariffs targeting Chinese imports could reduce its current-quarter performance by approximately $900 million. While iPhone sales rose 2%, driven partly by pre-tariff consumer demand, shares came under pressure in after-hours trading.
Despite tariff concerns resurfacing, the tone in Thursday’s session was clearly driven by earnings resilience, particularly from firms with strong exposure to cloud, AI, and enterprise IT spending. Investors will now watch closely whether this momentum can hold in the face of potential policy volatility and further guidance revisions. For the Nasdaq, the session marks a return to leadership, but questions remain over how sustainable this tech-driven rally can be under tightening trade conditions.