Technology earnings split investor sentiment as Alphabet reports strong results and jumps six percent, Meta declines eight percent on new federal cash-tax legislation impact, and Microsoft slips four percent after higher spending tied to OpenAI partnerships compresses margins, collectively highlighting diverging fundamentals among major technology firms during the third-quarter cycle and prompting sector rotation within US equities ahead of additional releases from Apple and Amazon later this week.

Alphabet’s stock soared 6% on robust ad and cloud results. Meta fell 8% after new cash-tax legislation dented forecasts. Microsoft declined 4% as OpenAI-related costs hit margins. Analysts see sector dispersion increasing ahead of Apple and Amazon earnings.