Wednesday's trading saw a downturn in Nasdaq and S&P 500 futures, primarily driven by mixed investor responses to Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT)'s earnings reports. The underperformance of Alphabet's cloud division, which marked its slowest growth in over 11 quarters, led to a 6.6% drop in the company's shares in premarket trading. Despite this setback, Alphabet still surpassed overall earnings and revenue expectations.
Microsoft, on the other hand, witnessed a 3.6% rise in its shares following robust Q1 results across all segments. The company's successful AI investments and strong performance of its cloud business have been identified as key contributors to this positive outcome.
The day also saw other mega-cap tech stocks such as Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN) experiencing decreases of 0.8%, 0.5%, and 1.3% respectively due to the rise in long-dated U.S Treasury yields nearing the critical 5% level. The 10-year yield was at 4.87%, while the 30-year yield reached 4.99%.
Texas Instruments (NASDAQ:TXN) was not exempt from this trend, shedding 5.1% due to lower-than-anticipated Q4 revenue and profit projections.
In contrast to these tech giants, Deutsche Bank (ETR:DBKGn)'s shares jumped nearly 7% following the release of better-than-expected profit figures.
The market is now poised to react to forthcoming earnings reports from companies like Boeing (NYSE:BA), IBM (NYSE:IBM), General Dynamics (NYSE:GD), and Meta.
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