Microsoft Rallies on Cloud Strength

Microsoft shares climbed 4.2% to $512.30 in afternoon trading, putting the stock on track for its best day in three months. The gains came after the tech giant posted fiscal fourth quarter revenue of $82.4 billion, up 14% from a year earlier. Azure, the company's cloud computing division, grew 28% and contributed more than half of total revenue. Chief Financial Officer Amy Hood said on the earnings call that "AI demand remains a tailwind, and our data center capacity is being expanded to keep up."

Analysts welcomed the results. Daniel Newman, chief executive of Futurum Research, said, "Microsoft is proving that AI monetization is real. The market is responding to the margin improvement in the quarter." The stock's rally helped lift the broader Nasdaq Composite, which was up 1.1% in afternoon trading. Microsoft's revenue from AI services more than doubled from the prior year, executives noted.

Jersey Mike's IPO Takes Off

Jersey Mike's, the sandwich chain known for its submarine sandwiches, made its stock market debut Thursday. The company priced its initial public offering at $25 per share, above the marketed range of $22 to $24, and began trading on the New York Stock Exchange under the ticker JMIX. Shares opened at $28 and were recently up 10% at $27.50, giving the company a market value of roughly $8 billion.

The IPO raised $1.4 billion for the company and its selling shareholders. Jersey Mike's operates more than 3,000 franchises in the U.S. and reported revenue of $3.2 billion in 2025, up 18% from the previous year. Chief Executive John Hughes said in a statement that "the strong demand from investors reflects the strength of our brand and the loyalty of our customers."

Investor interest in the IPO had been building all week. Kirk Bower, managing director at IPO Advisory Group, said, "Jersey Mike's has the same economics as other fast food chains but with a unique model. It was an easy deal to get done." The company plans to use proceeds to pay down debt and fund expansion.

Market Overview and Other Movers

The Dow Jones Industrial Average was up 0.3%, while the S&P 500 gained 0.7%. Technology stocks led the way, with Microsoft and other mega caps providing support. Treasury yields slipped as investors digested corporate earnings. The 10 year Treasury note was at 4.02%, down from 4.11% yesterday.

In other news, energy stocks declined as oil prices fell 2% to $68 per barrel. Investors are monitoring ongoing geopolitics and the upcoming Federal Reserve meeting. Some analysts expect the Fed to hold rates steady. The CBOE Volatility Index, often called the fear gauge, was down 0.8 point at 15.3, indicating calm conditions.

What to Watch

Looking ahead, traders are focusing on the rest of the earnings season. Major banks report next week, and investor sentiment remains positive. Microsoft's earnings were a bright spot, but other tech companies could struggle with high expectations. Jersey Mike's will need to manage its fast growth and rising competition in the fast casual space.

We are updating this story throughout the trading day. Check back for the latest on Microsoft, Jersey Mike's and other market news. For more details on Microsoft's earnings, see our full report. For Jersey Mike's, see our IPO tracker.