Meta and Microsoft led tech stocks higher last week despite soaring bond yields
Here's a look at the three developments that drove the action in our portfolio last week.
TL;DR
- Major stock indices, led by the tech-heavy Nasdaq, saw gains as technology names strengthened.
- Surging Treasury yields to multi-decade highs, driven by strong economic data and hawkish Fed commentary, created headwinds for the market.
- Meta CEO Mark Zuckerberg outlined plans to expand the ecosystem around its AI agent Muse, integrating it across hardware and apps for monetization.
- Meta's stock surged, approaching a $2 trillion market cap, with investors crediting its AI spending potential beyond advertising.
- Microsoft's stock rose, regaining positive territory for the year, as analysts cited accelerating Azure growth and confidence in its AI investments.
- The combination of increased cloud growth and maintained free cash flow positive status bolstered confidence in Microsoft's AI investments.