Tech stocks, including AI-related companies, experienced a significant comeback following strong earnings reports from Microsoft and Meta Platforms.
Both companies emphasized their commitment to investing in AI technology during their earnings calls.
Meta raised its capex guidance for 2025, signaling continued growth in AI infrastructure. AI-related stocks surged, with companies like Nvidia, Arista Networks, Vistra, and Vertiv seeing significant gains.
Microsoft's Azure cloud business showed strong growth, with a significant portion attributed to AI. Microsoft and Meta Platforms' positive results boosted tech stocks and helped indexes rally, erasing previous losses.