Microsoft, Alphabet results raise hopes about Big Tech weathering slowdown

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2022. REUTERS/Brendan McDermid

(Reuters) - Microsoft Corp and Alphabet Inc results sparked a relief rally on Wednesday in heavyweight technology and growth shares as investors expressed confidence in Big Tech's ability to navigate a recession.

High-growth and megacap companies have powered the U.S. stock market for the past decade, but rising interest rates to combat decades-high inflation as well as a recent sharp rally in the dollar have taken a toll on the stocks.