Stocks Rise Sharply as Microsoft Drives Tech Sector Surge
U.S. stock indexes closed sharply higher on Thursday after strong results from Microsoft reassured investors about AI spending and cloud growth. The S&P 500 rose +1.66%, the Nasdaq surged +3.36%, and the Dow gained +1.19%. Microsoft's Q4 Azure revenue grew by more than expected, marking its fastest quarterly increase in four years at +43% (excluding forex), which boosted investor confidence. The positive momentum extended to AI infrastructure stocks like chipmakers as investors became less concerned about over-spending on artificial intelligence. Amazon and Apple are set to report earnings after the market close later this week. Meanwhile, Meta Platforms dropped more than -7%, weighed down by a disappointing revenue forecast. Bond yields also rose for two consecutive days amid concerns that inflation remains above target despite unchanged interest rates from the Fed. Economic data was mixed: Q2 GDP growth came in at +1.5% annualized—below expectations—but consumer spending and core PCE showed some easing of price pressures.
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Topics: AI infrastructure Microsoft Nasdaq S&P 500 tech sector rally