From Yahoo Finance: 2025-05-04 09:00:00

Tech giants in the S&P 500, like Amazon and Microsoft, reported strong outlooks despite trade policy uncertainty. The Nasdaq 100 Index rose 10% in two weeks. While concerns of renewed volatility persist, companies like Google and Microsoft are optimistic about long-term growth trends. Earnings for tech giants are projected to rise in 2025.

Investors were relieved by tech giant earnings reports showing strong demand for electronic devices, cloud services, and software. While Apple disappointed, most companies eased fears of a profit slump. The looming threat of Trump’s tariffs remains, but the market remains cautiously optimistic about the tech sector’s performance.

Tech companies like Nvidia and Meta reassured investors with revenue forecasts in line with or exceeding estimates. Microsoft’s Azure cloud business is thriving, while Amazon and Meta remain confident in demand. The earnings season also calmed concerns about capital spending on AI computing gear, boosting chipmakers’ shares.

Despite concerns about tariffs and growth, tech giants are seeing profit estimates rise. Analysts are optimistic about the growth of the Magnificent Seven companies, with earnings expected to increase by 21.6% in 2025. While uncertainties remain, the tech sector’s performance has been better than expected, providing some relief to investors.

Read more: Big Tech earnings defy fears of ‘worst-case scenario’ for stocks