Meta and Microsoft said they planned to spend even more on AI in 2026, and fears of a bubble keep mounting.

Guggenheim analyst John DiFucci raised his rating on Microsoft's stock to buy from neutral on Monday. With that, all 61 firms polled by FactSet give the stock a buy or equivalent classification. DiFuc

President Trump and China's Xi talk trade, and investors eye big tech earnings later. Follow along for live news and analysis of the Dow, S&P 500 and Nasdaq.

However, Microsoft revealed a major drop in profit due to what it termed was an “equity method investment” in OpenAI Group PBC, resulting in a 41-cents-per-share hit to its earnings and a $3.1 billion drop in its net income. Even so, the company’s bottom line was still healthy at $27.7 billion, up from $24.67 billion in the year-ago quarter.

The S&P 500 fell 0.3% to 5,018. Nasdaq sank 0.6% to 15,170 as Meta plunged 11% after weak ad revenue guidance. Microsoft dropped 2.1% despite strong cloud growth. The Dow Jones rose 120 points to 39,310,

So, the official answer is that Microsoft could announce a stock split on Oct. 29, when it releases first-quarter fiscal year 2026 (ending Sept. 30) earnings. However, there's no guarantee that it will. Even if Microsoft doesn't announce a stock split, there could be some news that triggers a positive reaction in the stock price.

Q1 earnings beat expectations with $77.7B revenue but shares fall 2% on OpenAI costs and surging AI infrastructure spending concerns.