S&P 500 Steady as Big Tech Earnings Power AI Optimism

The S&P 500 (SPX) opened Thursday in positive territory, supported by a flurry of big tech earnings.

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Amazon (AMZN), Meta Platforms (META), Google (GOOGL), and Microsoft (MSFT) reported their earnings after yesterday’s close, reiterating their commitment to investing in AI. In 2025, the four companies dished out a combined $410 billion in capital expenditures, which are investments in long-term assets such as data centers, infrastructure, and equipment. That figure is expected to jump to over $670 billion this year, according to the Wall Street Journal.

AI Investments Power Economic Drive

The large-scale investments have already begun to pay off. During the first quarter, Google Cloud posted 63% revenue growth, followed by Microsoft Azure at 40% and Amazon Web Services (AWS) at 28%.

The investments have also helped drive economic growth. During the first quarter, gross domestic product (GDP) grew at an annualized rate of 2%, driven by a 10.4% jump in nonresidential business investment. That marks the highest growth in nearly three years.