XLK is trading 3.5% up today as a powerful earnings beat from Microsoft revitalized investor confidence across the technology sector.

  • Microsoft reported 43% growth in Azure cloud revenue and surging demand for its AI Copilot, lifting sentiment for large-cap tech and software stocks.
  • The rebound follows several days of selling tied to a global semiconductor rout and market fears regarding the sustainability of AI-related capital expenditures.
  • Gains in the ETF come despite lingering concerns over heavy spending at Meta and recent volatility in the broader chip sector.