Microsoft forecast stronger-than-expected quarterly growth for its cloud-computing business Azure after beating Wall Street estimates for the latest quarter.
Meta Platforms posted better-than-expected revenue on the back of strong advertising performance.
Meta rose 6.2%, while Microsoft jumped 8.2% in premarket trade. Both companies reported after the market close yesterday.
The strong results from the two megacaps helped calm jitters over an increasingly uncertain outlook for businesses and the economy, due to sweeping and often erratic shifts in US tariff policy and an escalating trade war with China.
Yesterday’s data showed the US economy contracted in the first quarter (Q1) for the first time in three years, while several companies have cut or even withdrawn financial forecasts amid a highly uncertain environment.
Despite that, estimates for S&P 500 earnings growth in Q1 now stand at 11.5%, as per LSEG data yesterday, up from the 7.8% growth forecast at the start of April.
At 5.11am, Dow E-minis were up 294 points, or 0.72%, S&P 500 E-minis were up 66.25 points, or 1.19%, and Nasdaq 100 E-minis were up 328.5 points, or 1.67%.
Other technology megacaps jumped, with Nvidia up 4.3% and Alphabet gaining 1.1%.
After Microsoft and Meta’s strong reports, Amazon.com and Apple are scheduled to report after the close today.
Amazon shares rose 4%, but Apple shares slipped 1.3% after a federal judge ruled the iPhone maker had violated a US court order to reform its App Store.
Corporate results continue at full throttle, with Eli Lilly, McDonald’s and Mastercard among those due before the bell.
The day’s economic data docket is also heavy with weekly jobless claims, manufacturing PMIs and construction spending.
Despite choppy intraday trading, the S&P 500 has managed to close higher for the past seven sessions, a winning streak last seen in late November.
The benchmark index and the Dow notched monthly losses in April, while the Nasdaq rose slightly.
Mobile chip designer Qualcomm was one of the latest firms to forecast a hit to revenue from the trade war. Its shares fell 5.2%.
Meanwhile, shares of Robinhood rose 3.1% after higher volumes amid volatile markets lifted the trading platform’s profit above forecasts.