AI Sparks Tech Rally: Alphabet, Microsoft Lead Gains

Key Takeaway

• Alphabet (GOOGL) and Microsoft (MSFT) lead pre-market gains with 12% and 4.4% increases, respectively, driven by AI advancements; Intel (INTC) and Boyd Gaming (BYD) face declines of 7.8% and 13%.
• Snap (SNAP) jumps 26% on strong quarterly results, contrasting with Roku's (ROKU) 3.6% drop amid cautious profit projections, highlighting divergent trends in tech and social media sectors.

AI Fuels Tech Surge

In the early hours of New York trading, the S&P 500 futures indicated a promising start, climbing 0.7%, buoyed by the tech sector's robust earnings reports. Microsoft Corp. and Alphabet Inc.'s latest financial results have reignited enthusiasm for the artificial intelligence (AI) boom, propelling Nasdaq 100 futures up by 1%.

Earnings Spotlight: Winners and Losers

Alphabet (GOOGL) emerged as a pre-market star, soaring 12% after its first-quarter revenue outpaced expectations, thanks in part to AI-driven growth in its cloud business. Similarly, Microsoft (MSFT) enjoyed a 4.4% uptick after surpassing third-quarter forecasts, further evidence of AI's burgeoning impact on the tech landscape.

Conversely, not all news was positive. Intel (INTC) faced a 7.8% decline after presenting a less-than-optimistic second-quarter outlook, highlighting ongoing challenges in its turnaround efforts. Boyd Gaming (BYD) also stumbled, dropping 13% due to first-quarter earnings that fell short of analyst predictions.

Healthcare and Consumer Goods Shine

Beyond tech, other sectors also saw notable movements. AbbVie (ABBV) climbed 2.1% after raising its full-year profit guidance, signaling strong performance from its newer anti-inflammatory treatments. In the consumer sector, Skechers (SKX) leaped 11%, buoyed by an upgraded full-year sales forecast, showcasing the company's optimistic outlook.

Social Media and Streaming Adjust

The social media landscape was brightened by Snap (SNAP), which surged 26% after delivering first-quarter results that exceeded expectations and provided a robust outlook. However, Roku (ROKU) experienced a slight downturn, slipping 3.6% amid projections of moderated adjusted Ebitda in the latter half of the year.