Closing Bell: Powell Cools December Cut, Tech Earnings Strong

Key points

• Markets ended mixed as gains in tech, communication, and energy were offset by declines in real estate and consumer staples, while Fed Chair Powell’s comments on rate cut uncertainty sparked volatility and pushed Treasury yields higher.
• Alphabet (GOOGL) rose after-hours on strong earnings, driven by a 34% YoY jump in Google Cloud revenue amid robust AI demand.
•  Microsoft (MSFT) and Meta (META) fell post-earnings despite beats, with Meta down on higher 2026 capex guidance and a $15.93B tax charge.

Markets ended mixed, with the S&P 500 (SPX) closing flat at 0.00%, the Nasdaq-100 (NDX) advancing +0.41%, and the Russell 2000 (RUT) declining by -0.87%. Information Technology, Communication Services, and Energy sectors led the gains, while Real Estate and Consumer Staples dropped by more than 2%. Federal Reserve Chairman Jerome Powell’s comments on the unpredictability of a December rate cut added volatility across all asset classes, as the 10-year Treasury yield moved higher following today’s rate cut decision.

Alphabet (Google) Moves Higher Post Earnings

Alphabet (GOOGL) rose in after-hours trading after reporting revenue and adjusted EPS that beat market expectations. The beat was driven by strong results from the Google Cloud segment, whose revenue increased by 34% year-over-year, reflecting robust demand for AI solutions.

Microsoft Drops Despite Earnings Beat

Microsoft (MSFT) initially fell 2.44% in after-hours trading despite reporting revenue of $77.7 billion and adjusted earnings per share of $3.72. Consensus estimates had projected Q1 revenue of $75.32 billion and adjusted EPS of $3.66. Microsoft’s cloud revenue exceeded $49.10 billion for the quarter.

Meta Drops 7% Post Earnings

Meta Platforms (META) initially declined 7.44% in after-hours trading after reporting a beat on both the top and bottom lines. Revenue for the quarter came in at $51.24 billion versus expectations of $49.4 billion. Adjusted earnings per share also beat expectations, coming in at $7.25 versus the $6.69 estimate. The company noted: “expectation is that capital expenditures dollar growth will be notably larger in 2026 than 2025.” Meta also recorded a one-time non-cash tax charge of $15.93 billion.

Key Market Events for Tomorrow

• 9:55 AM ET: FOMC Member Bowman Speaks
• 10:30 AM ET: EIA Natural Gas Storage
• 1:20 PM ET: FOMC Member Logan Speaks 

Notable Earnings for Tomorrow

• Premarket: MO, BIIB, BMY, CMCSA, LLY, HSY, K, KMB, MA, MRK, RBLX, SHAK
• Postmarket: AMZN, AAPL, NET, COIN, MSTR, RDDT, RKT, ROKU, TWLO, WDC, ZG