- Microsoft shares surged 7% in extended trading after the company's finance chief, Amy Hood, indicated growth in capital expenditures for fiscal 2027, citing "demand signals across our portfolio."
- Azure revenue exceeded $100 billion for the first time in fiscal 2026, marking a significant milestone for Microsoft.
- The Federal Reserve held rates steady amid ongoing market uncertainty, as stated by Chairman Kevin Warsh.
- Capital expenditures for the fiscal fourth-quarter reached $41 billion, a 69% increase, indicating strong investment growth.
- U.S. equity futures rose as investors reacted to the latest Big Tech earnings and the Fed's decision.
- Asian stocks are expected to track Wall Street lower due to concerns over artificial intelligence spending and uncertainty regarding the Fed's policy outlook.
- The Nasdaq 100 entered a technical correction, with an 11% decline from its record high.
Microsoft's shares surged 7% in after-hours trading following a strong earnings report, with Azure revenue surpassing $100 billion for the first time in the 2026 fiscal year. Finance chief Amy Hood highlighted growing demand signals across the company's portfolio, indicating further growth in capital expenditures for the 2027 fiscal year, which rose 69% to $41 billion in the fourth quarter.
The positive performance comes amid a backdrop of mixed earnings reports from other tech giants and the Federal Reserve's decision to keep interest rates steady. Federal Reserve Chairman Kevin Warsh noted that while markets can provide insights, they are not always definitive sources of information. This uncertainty has contributed to fluctuations in equity-index futures, with Asian stocks expected to follow Wall Street lower due to concerns over artificial intelligence spending and the Fed's policy outlook.
The Nasdaq 100 has entered a technical correction, reflecting a decline of 11% from its record high, as investors weigh the implications of the Fed's decisions and the broader economic landscape. As the tech sector navigates these challenges, Microsoft's robust performance stands out, showcasing its resilience and growth potential in a competitive market.
“Microsoft's capital expenditures and finance leases jumped 69% to $41 billion in the fiscal fourth quarter, signaling strong demand across its portfolio. Meanwhile, the Nasdaq 100 has entered a technical correction, declining 11% from its record high, raising concerns about the broader tech sector's performance.”
CNBC
