Q2 Earnings Highlights: Pegasystems (NASDAQ:PEGA) Vs The Rest Of The Automation Software Stocks

Russia's Roskomnadzor added Apple and Microsoft to a state surveillance registry on Oct. 2, requiring them to store user data and hand it over to security services. Non-compliance may result in penalties or service restrictions. Russia has tightened control over tech platforms since its 2022 invasion of Ukraine, according to Bloomberg.

The Fed is expected to hold interest rates at 3.75% to 4%, with a 92% chance of no change. Alphabet and Microsoft earnings are upcoming. U.S. stock futures are mixed, with Nasdaq 100 futures up 0.4%. Chip stocks rose premarket after SK Hynix's record profit, with Micron up 4% and Intel up 2%. European markets fell slightly.

Microsoft launched the Maia 300 AI chip, aiming to reduce reliance on NVIDIA. The chip is expected to deliver 40% more tokens per megawatt than leading GPU-based systems, with full configurations offering up to seven times the throughput of Maia 200. Microsoft plans to use Maia 300 as the primary AI inference system for its products and services, starting multi-gigawatt deployments in 2027.

Russia's Roskomnadzor added Apple and Microsoft to its register of information disseminators. The companies must now store user data and messages in Russia for extended periods. Apple is listed as a software provider, while Microsoft is described as an ecosystem of software, hardware, and cloud services.

Microsoft (MSFT) reported Q1 revenue of ~$90.66–90.68B and EPS of ~$4.72, with Azure revenue at ~$33.06B. The company announced a voluntary exit program for ~60,000 roles. Azure growth is expected at 44–45% CC for Sept, with cash flow >$8B. MSFT restated Azure revenue for fiscal 2025 and 2026 under a new disclosure framework. Options imply a ~5% move for MSFT by week's end around its quarterly report.

Microsoft is offering about 60,000 employees in select roles and countries a voluntary exit program with financial support, as it adapts its workforce for AI-focused priorities. The program is voluntary and varies by country, with eligible employees having until early December to decide. Microsoft has also made conventional job cuts this year, totaling about 4,800 layoffs in July.