U.S. stocks remained flat following the Fed’s decision to keep interest rates unchanged. Two governors dissented in favor of a rate cut, signaling a cautious approach for 2026. Speculation rose about President Trump’s potential replacement for Fed Chair Powell, impacting market sentiment near all-time highs.

Microsoft beat revenue and profit expectations in Q2 2026, driven by cloud and AI demand. Azure revenue surged 39%, exceeding analyst projections. Despite strong performance, shares dropped 12% in early trading due to concerns over elevated capex and margins as Microsoft scales infrastructure.

AI firms addressing global challenges may offer lucrative investment opportunities beyond well-known tech stocks. Little-known AI companies could deliver significant profits in the coming months and years. Investors can download 7 Best Stocks for the Next 30 Days for recommendations from Zacks Investment Research.

Read more at Nasdaq: Why This Pullback in Microsoft (MSFT) is a Buying Opportunity