Vole shares rebounded after Microsoft forecast cloud growth in the current quarter. Shares climbed more than five per cent to $303.14.
Executives forecast revenue for Microsoft's Intelligent Cloud unit of $18.75 billion to $19 billion for the third quarter, compared with a Wall Street consensus of $18.15 billion, according to Refinitiv data.
The cocaine nose jobs of Wall Street said that this news should start to change the sentiment tide against tech shares. Tech shares have been hammered since Christmas, despite brilliant results and promises.
Microsoft's forward-looking confidence, on top of its revenue for the second quarter beating estimates, helped battle back a backlash against tech shares that has led to stock price gyrations.
Jefferies analyst Brent Thill said cloud acceleration and commercial bookings highlighted by Microsoft Chief Financial Officer Amy Hood all helped "save the Nasdaq."
Accelerating constant currency growth for Azure - Microsoft's flagship cloud offering - coupled with strong demand will likely be reflected in upcoming financial reports from Microsoft rivals Amazon.com and Google, Thill added.
Projected Azure growth validates the strength of the business and the sustainability of all cloud growth, Moerdler said.