From Yahoo Finance: 2025-05-01 18:15:00

Big tech ETFs saw a boost after Microsoft and Meta reported strong earnings and a bullish outlook for AI. Microsoft beat estimates with $3.46 EPS and $70.1 billion revenue, driven by 35% growth in Azure. Meta exceeded expectations with $6.43 EPS and $42.3 billion revenue, with CEO Zuckerberg highlighting Meta AI’s popularity.

Meta raised its full-year expenditure guidance to $68 billion, up from $62.5 billion, emphasizing its AI infrastructure investments. Both Microsoft and Meta’s positive results spurred gains in the broader tech sector, with Nvidia benefiting from AI demand. Invesco QQQ Trust, holding top tech stocks, rose 2% on Tuesday and is 10% below its all-time highs.

Apple and Amazon are set to announce their earnings, potentially adding momentum to the tech rally. The tech landscape remains optimistic following Microsoft and Meta’s strong performance, with expectations of continued growth in the sector. AI-driven companies are leading the way in tech innovation and investment.

Read more: Microsoft, Meta Earnings Ignite Rally in Big Tech ETFs