STORY: Shares of Microsoft and Google-parent Alphabet jumped more than 5% Wednesday morning, a day after both tech giants reported results that eased investors' fears over whether the high-growth companies could withstand a likely recession.
Alphabet reported better-than-expected Google ad sales, while Microsoft said its revenue this fiscal year would grow by double digits.
That sparked a relief rally in heavyweight tech and growth stocks Wednesday, with shares of Apple, Amazon, Tesla and Meta Platforms all climbing higher.
Investors have been looking to see if this week's earnings news from mega-cap companies might help the stock market sustain its recent rally.
Mega-caps have powered the stock market for the past decade, but rising interest rates from the Federal Reserve to fight decades-high inflation have taken a toll on the stocks this year.
Apple and Amazon are slated to post results on Thursday - which would conclude the earnings reports from the country's largest companies - as Apple, Microsoft, Alphabet and Amazon together account for nearly a quarter of the weight in the S&P 500 index.