US stocks staged a major comeback on Thursday morning after a Fed-fueled sell-off, as Microsoft stock led tech gains and more earnings were on deck. But fresh US attacks on Iran, a bond rout, and worries about AI spending kept investors on guard.
The Dow Jones Industrial Average advanced 0.5%, while the SP 500 rose 0.8%. The Nasdaq Composite led gains, jumping 1.5% after the Nasdaq-100 index entered a correction on Wednesday, led by heavy declines in chip stocks.
The fortunes of Meta and Microsoft stocks diverged after the two “Magnificent Seven” stalwarts reported earnings on Wednesday afternoon. Meta shares fell by about 9% in early trading, extending their historic losing streak, after the tech giant’s earnings miss added to worries about its ability to recoup AI investments. Microsoft’s stock jumped more than 11%, meanwhile, after its Azure cloud business topped $100 billion in revenue for the first time.
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