Morning Squawk: Big Tech Beats, Powell’s Rate Call, Pershing Square IPO & Market Outlook

By Azon Vault On May 1, 2026

Morning Squawk: Big Tech Earnings, Powell’s Decision, Pershing Square IPO & More

Investors woke up to a jam‑packed morning. From record‑breaking earnings at the tech giants to a pivotal Fed announcement, and the buzz around Pershing Square’s upcoming IPO, the market narrative is shaping fast. Here’s what you need to know.

1. Big Tech Earnings Beat Expectations

Apple (AAPL) – $81.8 B revenue, 12% YoY growth

iPhone sales up 9% driven by 5G adoption.
Services segment hit $23 B, fueling a 20% margin expansion.
Guidance: FY2024 revenue $395‑$405 B, above Street consensus.

Microsoft (MSFT) – $56.2 B revenue, 15% YoY growth

Azure cloud revenue surged 32%, benefitting AI‑enabled workloads.
Office 365 commercial subscriptions rose 10%.
Outlook: Cloud operating margin to hit 45% by FY2025.

Alphabet (GOOGL) – $74.6 B revenue, 14% YoY growth

Search ads rebounded after a soft Q4, up 8% YoY.
YouTube ads +12% and Cloud +27%.
Management signaled stronger AI monetization in 2025.

All three beat consensus EPS estimates, pushing their stocks up 2‑4% in pre‑market trading. The earnings beat reinforces the tech sector’s resilience despite macro‑headwinds.

2. Fed Chair Jerome Powell’s Rate Decision

At 2:00 PM EST, Powell announced the Federal Reserve would keep the policy rate steady at 5.25%‑5.50% but signaled a possible rate cut later this year if inflation trends continue downward. Key takeaways:

Inflation: Core PCE cooled to 3.6% YoY, the lowest since mid‑2022.
Economic Outlook: GDP growth projected at 2.1% for 2024, modest but stable.
Market Reaction: The S&P 500 rallied 1.1% after the statement, while the 10‑year Treasury yield slipped 6 bps.

Investors are now pricing in a 25‑basis‑point cut by year‑end, a shift from the previous “higher‑for‑longer” stance.

3. Pershing Square’s Highly Anticipated IPO

Bill Ackman’s Pershing Square Capital Management is set to go public via a $10 billion IPO on the NYSE, targeting a valuation near $50 billion. Highlights:

Structure: A SPAC‑style listing, with a dual‑class share system to retain Ackman’s voting control.
Capital Use: $2 billion earmarked for new activist investments, $1 billion for existing portfolio exits.
Investor Interest: Initial indications of $6 billion in firm commitments from institutional investors.

The IPO could be a catalyst for a broader wave of activist‑fund listings, a trend that has been dormant since the early 2020s.

4. Market Outlook & Tactical Moves

With tech earnings strength, a more dovish Fed tone, and fresh capital inflows from Pershing Square, the market shows bullish momentum. However, volatility remains elevated due to geopolitical concerns.

What to watch next:

AI integration: Earnings calls will focus on how AI drives top‑line growth.
Rate‑cut timeline: Watch the CPI release on Friday for clues on timing.
IPO pipeline: Follow other activist funds (e.g., Third Point, Bluebell) that may follow Pershing Square’s lead.

Conclusion

The morning’s data points to a market in transition – strong earnings, a more accommodative Fed, and new capital opportunities. For investors, the sweet spot lies in tech leaders with AI upside, selective exposure to high‑conviction activist funds, and a watchful eye on inflation trends that could reshape the rate‑cut calendar.