Cloud Growth Propels US Tech Giants as Rolls-Royce Confirms 2026 Outlook

US equity markets are reacting positively to a wave of first-quarter earnings from the technology sector, with cloud computing growth serving as the primary catalyst. Alphabet and Amazon have seen significant gains after reporting results that exceeded analyst expectations, highlighting the continued monetization of AI models across their cloud divisions. Alphabet shares surged over 7% following the beat, while Amazon saw a 2.7% increase, driven by its fastest cloud growth in more than three years. Microsoft also reported strong momentum, with its Azure cloud arm posting 39% growth, although its share price saw a more modest increase of 0.3%. Meta Platforms was the outlier among the group, with analysts noting its performance was less robust than its peers. In the UK, Rolls-Royce Holdings indicated a strong start to 2026 and confirmed that its full-year guidance remains unchanged. The company attributed this stability to its ongoing transformation plan and internal 'self-help' measures designed to optimize operations. Chief Executive Tufan Erginbilgic acknowledged that conflict in the Middle East has introduced uncertainty for the aerospace industry. However, the company stated it is taking necessary steps to support its employees, customers, and suppliers, and expects to fully mitigate the current financial impact of these disruptions. Despite the positive momentum in US tech, the FTSE 100 is expected to remain in negative territory as the market digests these global updates and prepares for the Rolls-Royce annual general meeting.