S&P 500 Rebounds as Big Tech Earnings Take Center Stage
Complete. Here is the key summaryThe S&P 500 rebounded as investors analyzed Big Tech earnings. Microsoft led gains with Q2 revenue and EPS beats, alongside strong Azure growth and stable AI spending guidance. Conversely, Meta Platforms declined after issuing light Q3 revenue guidance and reporting lower-than-expected adjusted EPS. Apple and Amazon are scheduled to report later Thursday, while Palantir, AMD, and SpaceX will announce results next week.
The S&P 500 (SPX) is trading higher on Thursday as investors digest a slate of earnings from Big Tech leaders.
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Microsoft (MSFT) is leading the way higher after the company's second-quarter revenue and adjusted EPS beat estimates. In addition, its Azure cloud business grew 43% year-over-year. Microsoft also alleviated concerns of overspending in AI by reiterating its 2026 capital spending guidance instead of raising it.
Meta Misses with Apple and Amazon On Deck
On the other hand, Meta Platforms (META) is taking a beating after providing light guidance. The social media giant expects third-quarter revenue of $62.5 billion at the midpoint, falling short of expectations of $63.15 billion. Meta's second-quarter revenue of $60.8 billion was slightly above the estimate of $60.18 billion, while its adjusted EPS of $6.18 was below the expected $7.22.
More earnings are on the way. Apple (AAPL) and Amazon (AMZN) are set to report after the closing bell today. Next week, Palantir (PLTR), AMD (AMD), and SpaceX (SPCX) will announce their numbers.