Stock futures are rising this morning after major indexes hit record highs yesterday for the third straight session on the strength of a tech sector rally; the Federal Reserve is widely expected to announce a cut in interest rates at the end of its two-day policy meeting this afternoon; Nvidia (NVDA) shares continue surging after the chipmaker announced a flurry of new deals yesterday; three Magnificent Seven members—Microsoft (MSFT), Google (GOOG, GOOGL) and Meta (META)—are scheduled to release quarterly results later today; and shares of Dow component Caterpillar (CAT) are higher after a strong earnings report. Here's what you need to know today.
Major tech stocks are trading higher ahead of key earnings and the FOMC decision. Microsoft and Google show bullish setups, while Meta remains range bound.
Microsoft Corp. once again surpassed $4 trillion in valuation, joining artificial intelligence chipmaker Nvidia in the exclusive club that also briefly included Apple on Tuesday. The sky-high valuations highlight the investor frenzy around artificial intelligence.
OpenAI's Chief Financial Officer Sarah Friar said in Riyadh on Wednesday that this week's deal with Microsoft allows the company to continue raising capital in a much less complex manner.
Microsoft made its first investment of $1 billion in OpenAI back in 2019. The company went on to invest over $13 billion in the ChatGPT maker.
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Microsoft and OpenAI resolved a major dispute, lifting fundraising restrictions for OpenAI. The new deal completes OpenAI's restructuring of its for-profit arm.
Microsoft's MSFT first-quarter fiscal 2026 results, scheduled to be reported on Oct. 29, are poised to showcase the company's continued momentum in cloud computing and AI infrastructure. (Read Now: Microsoft Before Q1 Earnings: Should Investors Buy the Stock?
Results from the majority of the Mag 7 will likely set the tone for the remainder of the fourth quarter.
Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.
The new agreement values Microsoft's 27% stake at $135 billion and extends its IP rights through 2032, giving Microsoft investors “upside optionality.”
Microsoft will still hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit