Microsoft achieved the largest one-day market-capitalization gain for any U.S. company, adding $450 billion in value. This surge followed an earnings report that alleviated investor concerns about the company's substantial investments in data centers and AI infrastructure. The stock climbed 16%, buoying major indexes like the Nasdaq, S&P 500, and Dow Jones Industrial Average.

In stark contrast, Meta Platforms experienced a significant downturn, with shares dropping 8%. This decline was attributed to projections of negative free cash flow in the latter half of the year, a first since its 2012 IPO. Meta's stock marked its longest losing streak on record.

The divergent performance highlighted Wall Street's scrutiny of AI spending, questioning whether these massive investments will yield sufficient returns. The market's reaction signals a growing demand for tangible revenue growth from tech companies heavily investing in the AI race.