Microsoft's stock surged 15% as investor concerns about the company's artificial intelligence spending faded. The sharp rise reflected easing fears that heavy AI investments would weigh on the tech giant's financials.
Dow Jones futures climbed in late trading as Amazon extended its AI-driven stock rally. Apple shares tumbled after reporting mixed quarterly results and issuing a weak outlook. The divergence reflects contrasting investor sentiment toward tech earnings, with AI momentum supporting some names while others face pressure on growth concerns.
The Nasdaq is set to extend its rebound on Friday after its best day in weeks. Microsoft led the tech-sector recovery, recording its largest single-day increase in market value ever. The surge lifted overall market sentiment and fueled optimism in the broader market.
US stock benchmarks were trading higher in pre-market on Friday, buoyed by Amazon's quarterly results. The report was seen as a positive signal for AI-related trades, lifting overall market sentiment. The optimism in artificial intelligence drove broader gains ahead of the opening bell.
Tesla's stock rose 3.5% on Thursday, snapping a recent losing streak. The move followed earnings reports from Amazon and Microsoft that reassured investors the AI trade remains strong. The gain suggests Tesla benefited from renewed optimism around artificial intelligence after a period of market caution.
During his final earnings call as Apple CEO, Tim Cook emphasized that the company's hybrid AI strategy, combining on-device and cloud processing, is a competitive advantage. He contrasted this with rivals that depend heavily on massive cloud infrastructure. Cook steps down on September 1.