Big Tech Rescues Wall Street from Its AI Jitters

Meta and Microsoft to the Rescue

Tech giants Meta and Microsoft delivered strong earnings that helped reverse a sharp Wall Street sell-off, dubbed “Liberation Day” by a bearish analyst. The Nasdaq Composite rebounded more than 2% on Thursday, recovering from earlier AI-driven uncertainty that had sent shockwaves through the market. After Meta reported record-breaking advertising revenue and Microsoft posted solid cloud growth, investor confidence in the AI revolution was swiftly rekindled. These results not only restored faith in tech valuations but also softened recent fears that AI enthusiasm may have been overhyped.

AI is Back in the Driver’s Seat

Following weeks of volatile trading and growing skepticism toward AI-related stocks, the earnings from these two FAANG-era stalwarts proved critical in steadying sentiment. Bears had warned that the AI rally might have run too far too fast, but Meta’s and Microsoft’s solid operating metrics suggest otherwise. Encouraged by the tangible financial returns of AI investments, institutional investors appear to be doubling down, rebalancing their portfolios back toward growth-heavy tech. For now, big tech is reclaiming its role as the market’s anchor—and AI remains very much at the center of that narrative.