30.07.202613:39:14UTC+00US Stocks Rebound

US equities rebounded on Thursday from the previous session’s sharp losses, supported by a fresh round of corporate earnings and a recovery in semiconductor stocks. The S&P 500 and the Dow each rose more than 0.5%, while the Nasdaq 100 advanced 1.5%.

Microsoft jumped nearly 12% after reporting a 43% increase in cloud revenue, its fastest pace of growth since 2022. The upbeat results were coupled with capital expenditure forecasts that did not exceed market expectations, helping to ease worries about potentially unsustainable AI-related spending. Chipmakers also found some relief following yesterday’s selloff, with Micron and SanDisk each climbing more than 9%.

In contrast, Meta fell 10% after issuing guidance that came in below expectations. Investors remained cautious about whether the company’s AI initiatives will generate the revenue uplift its management, in line with other hyperscalers, has been signaling.

In fixed income, long-dated Treasury yields held onto their recent surge despite softer-than-expected Q1 GDP growth. The Federal Reserve left interest rates unchanged yesterday, but Chair Warsh’s reluctance to signal a potential rate hike fueled concerns that inflation may remain elevated for longer. Apple and Amazon are scheduled to report earnings after the close.