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Last updated: April 29, 2026, 5:30 PM ET

Tech Giants Show Strength Amid Spending Concerns

Major technology firms reported strong top-line results despite persistent concerns regarding the cost of artificial intelligence build-out. Amazon posted a 17% revenue jump, largely anchored by booming performance in its Web Services division, while Microsoft exceeded analyst expectations with $82.9 billion in sales for the first quarter. Meta Platforms achieved its largest quarterly revenue jump in recent history, yet the company concurrently disclosed plans to increase its AI data center spending beyond previous forecasts, signaling a capital-intensive race for AI supremacy. Furthermore, Google affirmed its commitment to a Pentagon AI contract after facing internal dissent, even as its deal with a Chinese AI start-up faces forced unwinding due to Beijing’s insistence, deepening the geopolitical split in advanced technology sectors.

Consumer & Retail Earnings Reflect Mixed Fortunes

Earnings reports from consumer-facing companies revealed varying degrees of success in navigating macroeconomic headwinds. The Cheesecake Factory saw comparable same-store sales tick up 1.6%, contributing to a higher quarterly profit, contrasting with MGM Resorts reporting a lower profit despite revenue gains fueled by growth in China operations. In e-commerce, EBay posted an 18% climb in gross merchandise volume, leading to a $512 million first-quarter profit, while Carvana achieved a $405 million profit by moving a record 187,393 retail units. Meanwhile, Mattel defied market expectations, accelerating sales of core products like Uno and Hot Wheels, suggesting resilience in certain discretionary segments.

Geopolitics and Commodities Drive Market Anxiety

Market sentiment was pressured as escalating tensions in the Middle East threatened inflation persistence, leading the Dow Jones Industrial Average to slip while oil futures touched wartime highs. Outgoing Fed Chair Jerome Powell warned that prices have not yet peaked during his final press conference, fueling uncertainty over the rate path, though traders are still pricing in a potential September rate cut based on other indicators. The Pentagon *estimated the cost of the war in Iran at $25 billion*, driven by expensive missile usage, raising alarms about U.S. readiness for broader conflicts, a situation that President Trump attempted to counter by hailing the UAE’s exit from OPEC in hopes of driving energy prices lower. Elsewhere, the crypto sector faced a crisis as Aave saw outflows exceeding $10 billion following a targeted hack, prompting a sector-wide bailout effort.

Corporate Restructuring and Legal Developments

In corporate structure news, PayPal announced a reorganization into three distinct business units—Checkout Solutions, Consumer Financial Services, and Payment Services—as part of a streamlining effort. In the automotive sector, Ford Motor projected a $1.3 billion tariff refund from the federal government following a Supreme Court decision, boosting expected earnings. Meanwhile, BP Plc secured a pact with Venezuela to explore offshore natural gas reserves, signaling progress in the South American nation’s energy sector revival. In regulatory and political arenas, two California ballot measures backed by Sergey Brin are on track to qualify, potentially setting up a clash over proposed wealth taxes.