Microsoft and Alphabet earnings, Fed decision ahead - what's moving markets
Investing.com — Microsoft and Alphabet are scheduled to unveil their quarterly earnings, with the results likely to set the tone for upcoming numbers from other tech sector titans. Meanwhile, the Federal Reserve gears up to start a highly-anticipated policy meeting and China's government vows to roll out measures to reignite the country's flagging economic recovery.
1. Microsoft, Alphabet to report
Microsoft (NASDAQ:MSFT) and Google-owner Alphabet (NASDAQ:GOOGL) are set to post their latest earnings after the close of U.S. trading on Tuesday, kicking off two weeks of results from big-name technology firms.
For both Microsoft and Alphabet, attention will likely center around their cloud computing businesses. The units have been consistent cash cows for both companies, although performance has suffered in recent quarters as economic uncertainty convinces many customers to rein in spending.
The weakness may have extended into the April to June quarter, according to analysts cited by Reuters. Microsoft Intelligent Cloud, the group's biggest revenue driver and home to its Azure public cloud computing platform, is seen expanding at its slowest rate since 2017 during the period. Alphabet's own cloud computing unit, meanwhile, is expected to slip to its lowest growth ever.
But some analysts say that the pressure on cloud computing may be waning, noting that many clients are beginning to figure out how to operate in a softer macroeconomic environment.
Elsewhere, generative artificial intelligence, which has driven a surge in tech stocks this year, will remain in the spotlight. The focus will be on how Microsoft and Alphabet, as well as rivals Amazon (NASDAQ:AMZN) and Facebook-owner Meta Platforms (NASDAQ:META), plan to generate
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