Microsoft Surges for Best Day Since 2008, Leading US Stocks Higher Amid AI Optimism
US stocks rebounded strongly on July 30, led by Microsoft’s best day in nearly 18 years after it reported better-than-expected quarterly profits. The S&P 500 rose 1.7%, the Dow Jones Industrial Average climbed 1.2%, and the Nasdaq composite surged 2.8%. Microsoft's stock jumped 15.5% as strong growth from its Azure cloud business signaled successful AI integration without a significant increase in capital spending, easing concerns about overinvestment. Semiconductor stocks also rebounded after recent losses, with Micron Technology rising nearly 19%, and Lam Research up almost 18%. However, Meta Platforms fell 8% due to weaker-than-expected profits. In the bond market, inflation worries persisted as Treasury yields remained elevated following comments from Federal Reserve Chair Kevin Warsh about maintaining pressure on high inflation. The broader stock rally was tempered by concerns that AI spending could hurt long-term profitability if returns fall short of expectations.
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Topics: AI investments Dow Jones inflation concerns Microsoft Nasdaq S&P 500