Stock Market Climbs on Strong Tech Earnings

The stock market bounced back this week, thanks in large part to upbeat earnings from Microsoft and Meta. Stock futures for the Dow, S&P 500, and Nasdaq all moved higher. The Nasdaq futures jumped 1.4%, the S&P 500 gained 1%, and the Dow rose 0.6%. Wall Street had been on edge over a potential economic slowdown, partly due to Trump’s unpredictable trade policy. But Microsoft and Meta calmed fears—for now.

Microsoft impressed with its strong cloud and AI growth. Meta, despite heavy ad exposure to China and ongoing FTC pressure, beat forecasts and showed confidence for Q2. These results helped ease market tension, at least temporarily, pushing investors back into tech.

Microsoft and Meta Lead the Charge with AI Power

Tech titans Microsoft and Meta are driving the market forward with earnings that showcase their dominance—and their challenges. Microsoft beat Wall Street expectations with $70 billion in revenue and $3.46 earnings per share. A big part of that came from its cloud business. Microsoft Cloud pulled in $42.4 billion, up 20% year-over-year. Azure, the company’s key cloud platform, got a 16-point revenue boost from AI alone. That’s not just hype—Microsoft is seeing real demand, even as it struggles with capacity constraints.

The company is racing to build infrastructure fast enough to keep up. It’s added more servers and data centers, but that’s still not enough. Some early-stage AI projects are being paused or scaled back. The AI boom is real, but even giants like Microsoft are feeling the strain. Still, the stock surged over 6% in after-hours trading, showing investor confidence remains strong.

Meta, meanwhile, is playing a different game. The company beat estimates too, with $6.43 EPS on $42.3 billion in revenue. Ad revenue came in above $41 billion despite fears that Trump’s tariffs might cause China-based advertisers to pull back. But the real drama isn’t just financial—it’s legal. The Federal Trade Commission is going after Meta hard. The agency says Meta has an illegal monopoly on personal social networking and wants it to sell off Instagram and WhatsApp.

CEO Mark Zuckerberg is in the spotlight. He’s reportedly tried to settle with the FTC, offering as much as $1 billion. The FTC refused, demanding up to $18 billion. That legal battle could shape the future of the company—and the industry. At the same time, Meta is investing heavily, raising its full-year capital spending forecast to as much as $72 billion. A lot of that cash is going into AI and the metaverse, even as its Reality Labs division continues to burn money.

Still, Wall Street is staying bullish. Meta’s stock jumped more than 4% after the earnings release. Despite being down this year, the company has gained over 25% in the past 12 months. Investors seem willing to overlook the legal drama as long as the ad dollars keep flowing and Zuckerberg keeps steering toward an AI-powered future.

Stock Market Eyes Trump’s Tariff Turbulence

While tech stocks rise, political risk is growing. President Trump’s tariff policy continues to shake investor confidence. His latest trade moves have added fuel to fears of stagflation—slow growth combined with high inflation. Trump, meanwhile, blames Biden for a weak stock market, ignoring the fact that volatility has increased under his own administration.

Trump’s tariffs are hitting big names like Apple and Amazon. Even Microsoft admitted the trade war could hurt cloud and AI spending. Economic data also shows signs of trouble, with weak GDP and a slowdown in hiring. These headwinds make investors nervous, even as tech shines in earnings reports.

Asia Watches the Stock Market as U.S. Futures Surge

Markets in Asia showed modest gains amid quiet trading due to regional holidays. Japan’s Nikkei rose 0.9% and Australia’s ASX inched up 0.1%. Asian investors were watching Wall Street closely, where stock futures surged. The rally came after the U.S. reported softer inflation, which could give the Federal Reserve room to cut interest rates.

Still, uncertainty from Trump’s tariff strategy weighs on global markets. Many importers are rushing to beat potential price hikes, distorting economic data. The fear of a prolonged trade war is growing, and Asia’s response reflects that caution. The broader stock market remains sensitive to every twist in Trump’s policy.

Stock Market Jitters Show Trump’s Big Role

The stock market has dropped nearly 10% since Trump returned to office. Despite that, Trump insists he’s not to blame. Historically, presidents influence markets—but Trump’s impact is unusually direct. His tariff decisions, court battles, and erratic messaging fuel constant swings. Analysts agree: Trump’s policies are driving 2025 volatility more than the Fed.

The S&P 500 saw a wild ride in April, at one point nearing a 20% drop. Investors now fear that Trump’s aggressive trade tactics could create an economic storm the Fed can’t fix. If that happens, even Microsoft and Meta might not be enough to steady the market. For now, though, AI and tech are keeping the stock market afloat.