Stocks Rise on Strong Tech Earnings; Bond Yields Hit Multi-Year Highs
U.S. stocks rose as strong earnings from Amazon and Microsoft reassured investors about AI spending returns, while longer-dated Treasury yields hit multi-year highs due to inflation concerns linked to rising oil prices. Microsoft forecast robust cash generation through fiscal 2027, followed by Amazon reporting its strongest cloud growth in over four years. Despite gains across major indices like the S&P 500 and Nasdaq Composite, Apple shares fell more than 7% after a disappointing earnings report tied to supply chain issues. The bond market reacted sharply as three Fed policymakers publicly supported rate hikes following an unchanged interest-rate decision by the Federal Reserve. The yield on U.S. 10-year notes reached its highest level since early 2025, while oil prices climbed due to geopolitical tensions in key shipping routes like the Strait of Hormuz and Bab el-Mandeb. Japanese intervention boosted the yen slightly after a previous surge.
Topics: AI spending stock market tech earnings Treasury yields