US stock futures mixed before Fed; Microsoft drops on disappointing earnings
Investing.com-- S&P futures were flat and Dow futures fell in evening deals on Tuesday as investors hunkered down before a decision on interest rates from the Federal Reserve, while disappointing earnings from Microsoft weighed on major technology stocks.
While the firm’s overall earnings just edged past estimates for the June quarter, revenue from Azure, the company’s cloud business, grew 29%, missing estimates of 30.2% and also slowing from the 31% rise in the prior quarter. This came even as investment in AI saw capital expenditure surge by $5 billion in the quarter.
Microsoft’s earnings sparked losses across most of its heavyweight tech peers, given that they came just a week after earnings from Alphabet Inc added 5.4% after AMD clocked stronger-than-expected earnings and forecast upbeat revenue for the current quarter, citing strong demand from AI. A measure of bargain buying also aided chipmakers, after heavy losses on Tuesday and over the past two weeks.Wall Street indexes ended lower on Tuesday as investors pivoted from tech and into more economically sensitive sectors amid caution over the Fed and major tech earnings.at the conclusion of a meeting on Wednesday. But any signals on its plans to cut rates will be closely watched, as recent inflation data fueled growing conviction the Fed will begin cutting in September.
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