Microsoft's earnings surge lifts US stocks after Wednesday's sharp decline
Microsoft's strong quarterly results propelled a broad market rebound on Thursday, with the S&P 500 gaining nearly 1% and chip makers recouping losses.
Thursday saw U.S. equities recover after Wednesday's steep slide, led by Microsoft’s earnings beat that lifted its stock by over 15% and pushed the S&P 500 up 0.9%. The boost extended to the Nasdaq, which rose 1.8% following gains in AI-linked chip makers, including Micron Technology, Lam Research and Advanced Micro Devices. Microsoft’s Azure cloud growth was highlighted, while the company avoided announcing a large new AI-spending plan, easing investor worries about cash-flow strain.
In contrast, Meta Platforms missed profit forecasts and fell 8.9%, reflecting skepticism over its increased investment budget. Treasury yields slipped modestly, providing some relief after Federal Reserve Chair Kevin Warsh’s ambiguous comments on inflation policy.
Why it matters
Strong earnings from Microsoft revived market confidence and highlighted how AI spending decisions affect investor sentiment.
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