Microsoft Cloud Growth Boosts Pre-Market Trading Amid Upcoming Inflation Data and Tech Earnings
Stock index futures rose sharply in pre-market trading as Microsoft reported strong cloud revenue growth for the fastest pace in four years, signaling that AI investments are beginning to pay off. The tech giant's stock surged over 8% after CFO Amy Hood indicated continued acceleration of cloud unit performance and a pause on new capital spending this year. Market optimism was further supported by rebounds among chipmakers like Samsung Electronics, which reported an unprecedented jump in profits. Meanwhile, the market faces mixed signals ahead of key U.S. economic data releases including PCE inflation figures and Q2 GDP estimates. Meta Platforms saw its stock fall over 8% after a disappointing revenue forecast for the third quarter. The Federal Reserve left interest rates unchanged but faced dissent from three officials who favored a rate hike. In recent trading, chip stocks like KLA Corp. and Micron Technology fell sharply amid sector-wide volatility. Garmin was among the top gainers on strong earnings results.
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Topics: AI investments cloud growth Fed policy outlook Microsoft stock index futures