A robust rebound in technology stocks, ignited by strong Microsoft earnings, spread across global equity markets, according to Deutsche Bank strategists [1]. Microsoft shares surged by 15.51%, marking their best day since 2008 and resulting in the largest single-day market capitalization increase ever recorded for any company—$450 billion, a figure surpassing the market value of any European company except ASML [1]. This positive momentum in tech stocks propelled the KOSPI index to a 16.4% gain and lifted Japan's Nikkei by over 4% [1].
The rally extended to U.S. markets, with the NASDAQ climbing 2.78% and the Philadelphia Semiconductor Index rebounding 8.19%, its largest advance since April of the previous year [1]. The S&P 500 rose 1.66%, its best performance in seven weeks, despite weak market breadth as most constituents declined [1]. Meta was a notable exception to the tech rally, dropping 7.95% after its earnings report [1].
After the U.S. market close, Amazon and Apple released mixed results. Amazon's shares jumped nearly 10% in after-hours trading, following a 3.90% gain during the regular session, as revenue growth in its web services division accelerated to 37% year-over-year, surpassing the estimated 31.3% [1]. Amazon also raised its 2026 capital expenditure projection from $200 billion to $220 billion [1]. In contrast, Apple shares fell about 6% after-hours due to a disappointing sales growth forecast for the current quarter (9% to 11% versus the 12% estimate) [1]. S&P 500 and Nasdaq futures remained higher, up 0.49% and 1.07% respectively, reflecting continued optimism in the tech sector [1].
European equities also benefited from the tech-driven rally, with the Stoxx 600 up 0.77%, DAX up 0.60%, CAC up 0.92%, and FTSEMIB up 1.29%, while the FTSE 100 underperformed, slipping 0.10% [1].
CONCLUSION
A surge in technology stocks, led by Microsoft's record-setting performance, fueled gains across global equity markets. While Amazon exceeded expectations and raised its investment outlook, Apple's weaker sales forecast weighed on its shares. Overall, the tech sector's strength drove significant market advances and positive sentiment.