Microsoft’s latest financial results offered reassurance to investors concerned about the sustainability of AI spending, with robust revenue growth fueled by cloud operations and AI-driven services. The strong performance lifted shares in premarket trading and contributed to a broader uptick in tech stocks. In contrast, Meta Platforms reported weaker-than-expected forward guidance, triggering a decline in its stock price. The company’s cautious outlook raised concerns over the pace of AI adoption and advertising recovery, underscoring the uneven impact of technological investments across major tech firms.
At the same time, bond markets reacted sharply after the Federal Reserve maintained interest rates, pushing 30-year Treasury yields to their highest level in nearly two decades. This shift reflected investor skepticism about the central bank’s inflation-fighting resolve, with expectations of future rate hikes growing. The dollar weakened, while equities remained uncertain amid conflicting signals. Geopolitical developments further unsettled markets, as new U.S. military actions against Iran intensified tensions in the Middle East, adding pressure to an already volatile environment.