Published: 30 January 2026,06:27
Daily Market Analysis New
* U.S. equities saw heightened volatility, as investors digested mixed megacap tech earnings.
*AI spending took center stage, with markets focusing more on capital expenditure trends than headline profits.
*Microsoft shares tumbled, despite earnings beats, on concerns over cloud growth and surging AI-related costs.
Market Summary:
U.S. equity markets experienced increased volatility, as investors assessed earnings from several megacap technology companies, with attention shifting away from traditional revenue and profit growth toward sustainability and return on massive artificial intelligence-related spending. The change in focus reflects growing investor concern over whether heavy capital expenditures on AI infrastructure will translate into durable earnings growth.
Microsoft shares fell sharply after the company reported better-than-expected fiscal second-quarter results, including cloud revenue topping $50 billion for the first time. Despite the strong headline numbers, the stock dropped more than 11%, as investors expressed concern over signs of slowing cloud growth and the rapid expansion of AI-related capital spending. Microsoft, a major beneficiary of the AI boom through its early partnership with OpenAI, had previously seen its market capitalization climb above $4 trillion, but sentiment has cooled as questions mount over the pace of returns on AI investments.
The cautious tone around Microsoft weighed on broader tech sentiment, even as Meta delivered a more upbeat update. Meta shares jumped more than 10% after the company issued a stronger-than-expected revenue outlook and reaffirmed aggressive plans to expand its data center footprint. Meta said it expects to spend as much as $135 billion this year on AI and infrastructure, underscoring its commitment to winning market share in the AI race and helping offset broader concerns over tech sector spending discipline.
Elsewhere, Tesla shares edged lower after its annual results slightly underperformed expectations, with investors focusing on the company’s renewed emphasis on artificial intelligence and robotics initiatives. While the strategic pivot drew interest, markets remained cautious on near-term earnings visibility.
Beyond earnings, macro risks also remained in focus. Investors are closely monitoring U.S. monetary policy developments, after President Donald Trump said he would announce his nominee to chair the Federal Reserve later in the day. The decision is expected to mark the end of a months-long selection process and could have significant implications for future rate policy, adding another layer of uncertainty for equity markets already grappling with questions over AI spending efficiency and economic conditions.
Technical Analysis
NASDAQ, H4:
Nasdaq is trading higher while testing the Fibonacci expansion resistance at 25,940.00, with traders watching closely for a potential breakout. A decisive move above this level could allow the index to extend gains toward the next resistance at 26,475.00, signaling continuation of the bullish trend.
Momentum indicators show mixed signals: MACD reflects diminishing bearish momentum, while RSI at 54 remains above the midline, supporting the possibility of further upside if a breakout occurs.
However, if bullish momentum fails to hold, Nasdaq may retrace and consolidate near support at 25,565.00, with deeper support at 25,195.00 providing a defensive zone. Traders should monitor momentum and price action closely to identify whether the breakout is confirmed or a short-term pullback is underway.
Resistance Levels: 25940.00, 26475.00
Support Levels: 25565.00, 25195.00
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