Mixed Markets, Robust Earnings: Big Tech Dominates Market Sentiment

US stocks closed out last week in mixed territory as investors navigated a hawkish Federal Reserve, surging Treasury yields and sharply divergent earnings from top tech companies. The S&P 500 and Nasdaq Composite ended under pressure after the Fed left interest rates unchanged but offered little clarity on future policy moves, while the Dow Jones Industrial Average lagged amid a broad bond selloff that pushed long-term Treasury yields to their highest levels since 2007.

The market volatility was overshadowed by strong economic data reinforcing confidence in the underlying economy. Big Tech earnings dominated sentiment, producing a clear divide between AI winners and losers. Microsoft Corp. (NASDAQ:MSFT) surged after reporting robust Azure growth while maintaining its capital spending plans, and Amazon.com Inc. (NASDAQ:AMZN) also rallied on strong cloud results.

Nvidia-backed Nebius Group N.V. (NASDAQ:NBIS) caught the attention of investors with triple-digit revenue growth, a $2 billion investment from Nvidia Corp. (NASDAQ:NVDA), and its recent addition to the Nasdaq-100. The company's focus on renting AI compute capacity to customers positions it to benefit as demand for AI infrastructure continues to outstrip supply.