You can’t be cool in this market if you’re not in tech. Stocks are set for a strong day thanks to major postearnings surges in Big Tech names Microsoft and Meta Platforms . The former is trading more than 8% higher before the open, putting it on pace for its market cap to top above $4 trillion for the first time, while the latter jumped 11%. Other tech names such as Amazon and Nvidia also traded higher. “There are some moments that will remembered in the market for many years … last night was one of them with the eye popping results from Microsoft and Meta,” wrote Wedbush analyst Dan Ives, a noted tech bull. “These massive results seen by Microsoft and Meta further validate the use cases and unprecedented spending trajectory for the AI Revolution on both the enterprise and consumer fronts.” Here’s how the premarket performance from Meta and Microsoft looks like relative to other names: As far as the broader market is concerned, this is yet another sign for investors to pile back into tech — while non-Big Tech equities lag. The Defiance Large Cap ex-Mag 7 ETF (XMAG) is up just 1.2% month to date, while the S & P 500 has gained 2.6% during that time thanks to tech. Over the past three months, XMAG has gained about 10%, while the broad market index has surged 14%. XMAG is still outperforming the S & P 500 year to date, however. Investors can see that tech outperformance over the past three months below: Investors will get more Big Tech earnings after the close Thursday, with Amazon and Apple reporting. If Meta and Microsoft are any indication, these numbers should be gangbusters as well. However, Adam Crisafulli of Vital Knowledge advised clients to temper their excitement. “Investors shouldn’t extrapolate those two giants (which are more sovereigns than traditional corporate entities) with the rest of Corporate America/Europe as earnings from other companies last night and this morning were mixed,” he said in a note to clients. Take Shake Shack for example. The company’s second-quarter earnings and revenue beat analysts’ expectations. However, comparable store sales — a key metric for restaurant companies — grew less than expected, sending shares down 10% before the bell. Robinhood also fell more than 1% after crypto and equities trading revenue fell short of expectations. That overshadowed an earnings and revenue beat for the second quarter.
This has become the tech-and-everything-else stock market
Jul 31, 2025
