Stocks Rebound as Microsoft Earnings Ease AI Spending Concerns
The major U.S. stock indexes rebounded on July 30, with the Nasdaq Composite leading gains after strong earnings from Microsoft eased concerns about high spending in artificial intelligence (AI). Microsoft reported a better-than-expected +43% year-over-year growth for its Azure and cloud services revenue, marking the fastest quarterly increase in four years. The company's stock rose more than 15%, contributing to broader market optimism. Investors are now looking ahead to upcoming earnings reports from other tech giants like Amazon and Apple later this week. However, Meta Platforms saw a sharp decline of over -9% after issuing a disappointing revenue forecast. Meanwhile, bond yields increased slightly amid concerns about the Federal Reserve's ability to control inflation, which has exceeded its target for five consecutive years. Economic data was mixed: Q2 GDP growth came in at +1.5%, below expectations, while core PCE inflation eased as predicted.
Topics: AI spending cloud services growth market rebound Microsoft