US stock market today: Wall Street rebounded on Thursday, led by a sharp rally in Microsoft after the technology giant posted stronger-than-expected quarterly earnings. The S&P 500 rose 0.9%, recovering more than half of Wednesday’s decline, its steepest fall in seven weeks. The Dow Jones Industrial Average gained 250 points, or 0.5%, while the Nasdaq Composite climbed 1.8%, a day after slipping 9.8% below the record high it reached last month.Microsoft surged 15.2% after reporting quarterly profit that exceeded analysts’ expectations, supported by robust growth in its Azure cloud business. Chief Executive Satya Nadella said the performance reflected customers’ increasing adoption of Microsoft’s AI offerings. Investors also welcomed the company’s decision not to significantly raise its AI spending plans, easing concerns that heavy investments in artificial intelligence could strain cash flows without delivering the expected gains in productivity and profitability.In contrast, Meta Platforms dropped 8.9% after reporting quarterly earnings that fell short of forecasts, despite revenue slightly exceeding expectations. Some analysts pointed to the company’s decision to raise the lower end of its projected capital spending range for the year as a factor behind the decline.Chipmakers and memory manufacturers recovered some of their recent losses, as investors returned to stocks that had been hit by concerns over stretched valuations following the AI-driven rally. Micron Technology rose 8.4%, reducing its weekly decline to 13%, while Lam Research jumped 18.3% and Advanced Micro Devices advanced 7.3%.Broader markets also drew support from easing Treasury yields after Wednesday’s sharp rise. The yield on the benchmark 10-year US Treasury slipped to 4.65% from 4.67%, while the 30-year Treasury yield remained at 5.20% after climbing from 5.09% the previous day.Treasury yields had surged after Federal Reserve Chair Kevin Warsh offered few indications about the central bank’s next steps to tackle persistently high inflation. While elevated interest rates help curb inflation, they also weigh on economic growth and reduce the appeal of equities and other risk assets.Economic data released on Thursday showed the US economy expanded more slowly than economists had expected during the spring. Inflation remained above the Federal Reserve’s target in the latest month, although it came in slightly below market expectations.In commodity markets, oil prices eased after recent sharp swings driven by escalating tensions in the Middle East. Brent crude, the global benchmark, fell 1.5% to $86.79 a barrel. Prices have fluctuated dramatically this month, falling to as low as $72 before rising to $102 last week amid uncertainty over whether the United States and Iran could reach an agreement allowing oil tankers to move freely from the Middle East to global markets.
