Technology stocks led a broad market rally Tuesday as Apple reported quarterly earnings that significantly exceeded Wall Street expectations. The iPhone maker’s shares jumped 8% in after-hours trading, lifting the entire tech sector.

Apple posted revenue of $97.8 billion for the quarter, beating analyst estimates of $94.2 billion. iPhone sales remained strong despite concerns about market saturation, while services revenue reached an all-time high of $26.5 billion.

“Apple continues to demonstrate remarkable resilience in a challenging consumer environment,” said Morgan Stanley analyst Katy Huberty. “The company’s ecosystem strategy is paying dividends as users increasingly subscribe to multiple services.”

The NASDAQ Composite Index rose 2.3% on the news, while the S&P 500 gained 1.8%. Other major tech companies including Microsoft, Google parent Alphabet, and Amazon also saw their shares climb between 3% and 5%.

Federal Reserve officials indicated they are monitoring market conditions ahead of next week’s policy meeting. Traders are now pricing in a 65% probability of a rate cut in June, up from 45% last week.

Asian markets followed Wall Street’s lead, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index both opening higher Wednesday morning. European futures also pointed to gains when markets open in London, Frankfurt, and Paris.