Stock futures rise as Microsoft jumps after earnings; traders hope to recover from Fed Day sell-off: Live updates - CNBC

What the report says

CNBC reported that U.S. stocks rebounded Thursday as investors assessed major technology earnings and the Federal Reserve’s decision to keep interest rates unchanged. The Nasdaq Composite rose 2.8% to 25,122.18, ending a six-session losing streak, while the S&P 500 gained 1.7% to 7,437.63 and the Dow Jones Industrial Average added 613.92 points, or 1.2%, to close at 52,208.06.

The rally was led by Microsoft and semiconductor shares. Microsoft climbed 16% after reporting stronger growth in its Azure cloud business. Chip and memory-related stocks also advanced sharply: the iShares Semiconductor ETF rose more than 8%, Micron Technology gained 18%, Advanced Micro Devices advanced more than 13%, and South Korea’s SK Hynix rose more than 17%. CNBC also cited JPMorgan analysts saying hedge fund deleveraging in technology, semiconductor and memory names may now have less room to continue.

The gains followed a steep sell-off Wednesday, when the Dow fell more than 1,100 points after investors reacted to the Fed’s rate decision and concerns that inflation pressures could persist. CNBC said Treasury yields moved higher, with the 30-year yield hovering near levels last seen around 2007.

The session also showed divergence within megacap technology. Meta Platforms fell about 8% after a weaker revenue outlook and a sharp drop in second-quarter free cash flow, while Microsoft’s results reinforced optimism around artificial intelligence-linked infrastructure spending. Investors were also awaiting additional earnings from Amazon, Apple and Coinbase after Thursday’s close.