Microsoft shares jump 15% as U.S. stocks rebound from Federal Reserve rate hold
U.S. stocks staged a significant recovery on Thursday, rebounding from a previous sell-off after the Federal Reserve decided to hold interest rates steady. The Nasdaq Composite led the gains, climbing 2.5%, while the S&P 500 advanced 1.2% and the Dow Jones Industrial Average added 348 points. Microsoft was a primary driver of the rally, with shares jumping 15% after the company reported that its Azure cloud business surpassed $100 billion in revenue for the first time. In contrast, Meta Platforms shares fell 9% following a soft revenue forecast and a significant drop in second-quarter free cash flow. Economic data released during the session showed inflation remaining above the Federal Reserve's target, though the core PCE price index for June showed a slower pace of advancement. Meanwhile, the bond market reacted to the Fed's decision with the 30-year Treasury yield hitting a multidecade high near 5.24%. Global markets also saw mixed results, with South Korea's Kospi falling 1.2% and Japan's Nikkei 225 rising 0.7%. The administration's actions in the Middle East also influenced market sentiment as President Trump signaled a heavy retaliation against Iran.