S&P 500 Pulls Back as Big Tech Earnings Land | Closing Bell

Summary

U.S. stocks closed little changed on Fed Day, but after-hours earnings from mega-cap technology companies dominated the discussion. Microsoft and Meta were analyzed with skepticism over their heavy AI CapEx spending, while Tesla's after-hours strength was framed as a bet on Elon Musk's autonomy and robotics ambitions. IBM also reported better-than-expected revenue and cash flow. The hosts noted mixed sector performance and looked ahead to analyst calls.

• U.S. equities ended mixed on Fed Day; Dow and S&P 500 were little changed while the Russell 2000 fell.
• Microsoft's Azure growth met expectations, but heavy AI CapEx led investors to expect more, sending shares lower after hours.
• Meta's 2026 CapEx and expense guidance came in well above Street estimates, raising concerns about Zuckerberg's all-in AI spending.
• Tesla beat on EPS and gross margin, with shares up after hours as investors focused on autonomy, robotics, and 2026 product timelines.
• IBM beat revenue and free cash flow estimates, with shares rising after hours.
• Sector performance was mixed, with energy and technology higher while real estate and consumer staples lagged.
• Hosts highlighted the roughly $8 trillion in market cap reporting earnings and the importance of AI CapEx trends.