Tech Earnings: Microsoft, Meta, Tesla Results After Fed Holds Rates

Market Reaction to Fed and Tech Earnings

• 📊 The US stock market and Treasuries remained largely stable following the Federal Reserve's decision to hold interest rates steady.
• 💡 Mega-cap tech companies like Microsoft, Meta, and Tesla released their earnings, with mixed results impacting after-market trading.
• 📉 The dollar strengthened against the yen, reversing some of its recent decline.

Microsoft's Earnings and Outlook

• 💰 Microsoft reported revenue of $81.27 billion, exceeding estimates, with its intelligent cloud business performing in line with expectations.
• ☁️ Azure and other cloud services saw a 38% revenue increase, meeting street expectations.
• ⚠️ Despite solid revenue figures, Microsoft shares dropped significantly in after-market trading, potentially due to concerns over its spending and capex.

Meta Platforms' AI Investments and Outlook

• 🚀 Meta's first-quarter revenue outlook surpassed street estimates, and fourth-quarter results showed a beat on both revenue and ad revenue.
• 💰 A significant point of focus was Meta's 2026 capex forecast, projected between $115 billion and $135 billion, signaling substantial investment in AI buildout.
• 📉 Investors reacted negatively to the high capex forecast, causing Meta's stock to dip in after-market trading, despite strong AI-related revenue.
• 💡 The company's press release heavily emphasized AI and