Wall Street’s comeback: how tech giants turned a gloomy day into a rally

Wednesday began with a sense of dread on Wall Street. The Commerce Department’s report landed with a thud: the US economy shrank by 0.3% in the first quarter, the first contraction in three years. Investors braced for more pain. The Dow tumbled over 780 points at its worst, and the S&P 500 slid more than 2%. But by the closing bell, the mood had shifted dramatically. Big Tech earnings sparked a late-session surge, transforming a day of losses into a story of resilience and recovery.

Tech earnings flip the script

As the afternoon wore on, all eyes turned to Silicon Valley. Microsoft and Meta Platforms-two of the market’s heavyweights-were about to report their latest results. The anticipation was palpable. When the numbers hit, they did not disappoint.

Microsoft’s revenue jumped 13% year-over-year to $70.07 billion, with its Azure cloud business leading the charge. Net income soared to $25.82 billion, easily topping Wall Street’s forecasts. CEO Satya Nadella summed up the moment: “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infrastructure and platforms to apps, we are innovating across the stack to deliver for our customers.”

Meta Platforms, meanwhile, posted a 13% revenue gain and beat expectations on both the top and bottom lines. Shares of both companies soared in after-hours trading-Microsoft up 8%, Meta up more than 4%. The message was clear: even in a slowing economy, tech’s growth engines are still firing.

Solita Marcelli, chief investment officer at UBS Global Wealth Management, put it this way: “While the market’s volatility may continue until there is greater clarity regarding tariffs, we believe the most drastic fluctuations in Trump’s policies are likely in the past, leading to a more positive outlook.”

Volatility, tariffs, and a path forward

April was a rollercoaster for investors. President Trump’s new “reciprocal” tariffs, announced at the start of the month, set off a wave of volatility. At one point, the S&P 500 dipped into bear market territory, down more than 20% from its February peak. But as the month ended, the indexes clawed back much of those losses.

Despite Wednesday’s late rally, the Dow and S&P 500 still closed April with losses-down 3.2% and 0.8%, respectively. The Nasdaq, buoyed by tech, managed a 0.9% gain for the month. Retail investors, according to Treasury Secretary Scott Bessent, “Remained steadfast, while institutional investors have reacted with alarm” during the turbulence.

The day's tale-and the month's-is one of adaptation. Investors are coming to terms with a market defined by evolving trade policies, economic uncertainty, and the unstoppable march of technology. The late-session rally, led by Microsoft and Meta, is a reminder: even in the bleakest of times, the right spark can reverse fortunes.

As Jeff Buchbinder, chief equity strategist at LPL Financial, observed, “U.S. stocks have accelerated as we near April 30, striving for a flat monthly performance and recovering from losses following President Donald Trump’s tariff onslaught.”

With more earnings on deck and economic data still to come, Wall Street’s story is far from over. But for now, the resilience of tech-and the investors who believe in it-has offered a glimmer of hope amid the uncertainty.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.

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