Microsoft Surge Lifts Dow Jones Futures, S&P 500 Struggles Amid First Republic Crash

Overnight, Dow Jones futures increased, along with S&P 500 and Nasdaq futures, due to strong earnings from Microsoft and Google. Microsoft’s stock rose by more than 8% late on Tuesday, while Google authorized up to $70 billion in share buybacks. However, stocks dropped sharply during the stock market rally on Tuesday, as investor concern regarding major earnings persisted. First Republic Bank crashed due to deposit flight, sparking renewed concerns about the banking industry. Reports of a new Covid wave in China and concern over China’s growth weighed on stocks, Treasury yields, and commodity prices. US government default risks may also impact the market in the future. Although MSFT stock fell 2.25% to 275.42 in Tuesday’s regular session, the recent action may be viewed as a consolidation handle, and MSFT stock could clear the April 6 high of 292.08 in the coming days. Boeing will release its earnings report on Wednesday, while Meta Platforms, Amazon.com, and Nvidia will release their earnings reports later in the week, with significant implications for tech plays, cloud software, artificial intelligence, and networking.