Stock Market Today: Microsoft Ignites Chip Rebound as SanDisk Jumps 24%
U.S. equities clawed back Wednesday’s post-Fed losses by midday Thursday, with a blowout cloud print from Microsoft Corp. (NASDAQ: MSFT ) reviving the artificial intelligence trade and dragging beaten-down semiconductor names sharply higher. The Nasdaq 100 led with a 3.1% advance, though a 19-year high in long-dated Treasury yields kept the rally narrow. The S&P 500 rose 1.3% to 7,413, while the Dow Jones Industrial Average advanced 424 points, or 0.8%, to 52,019. Microsoft did most of the heavy lifting on the blue-chip index, with Amazon.com Inc. (NASDAQ: AMZN ) and Caterpillar Inc. (NYSE: CAT ) also contributing. Within Magnificent Seven stocks, Microsoft surged 16.6% after reporting 43% cloud revenue growth — its fastest since 2022 — alongside capital expenditure guidance that did not outpace expectations, easing fears that AI spending has run away from returns. Microsoft sto...
U.S. equities clawed back Wednesday’s post-Fed losses by midday Thursday, with a blowout cloud print from Microsoft Corp. (NASDAQ: MSFT ) reviving the artificial intelligence trade and dragging beaten-down semiconductor names sharply higher.
The Nasdaq 100 led with a 3.1% advance, though a 19-year high in long-dated Treasury yields kept the rally narrow.
The S&P 500 rose 1.3% to 7,413, while the Dow Jones Industrial Average advanced 424 points, or 0.8%, to 52,019.
Microsoft did most of the heavy lifting on the blue-chip index, with Amazon.com Inc. (NASDAQ: AMZN ) and Caterpillar Inc. (NYSE: CAT ) also contributing.
Within Magnificent Seven stocks, Microsoft surged 16.6% after reporting 43% cloud revenue growth — its fastest since 2022 — alongside capital expenditure guidance that did not outpace expectations, easing fears that AI spending has run away from returns.
Microsoft stock is now on pace for its best session since October 2008.
Meta Platforms Inc. (NASDAQ: META ) moved the opposite way, sinking 9.2% after guidance missed and investors questioned when its AI labs will convert into revenue.
Tesla Inc. (NASDAQ: TSLA ) gained 2.9% and Nvidia Corp. (NASDAQ: NVDA ) added 2.1%, while Amazon rose 5.3%.
Apple Inc. (NASDAQ: AAPL ) fell 1.9% and Alphabet Inc. (NASDAQ: GOOGL ) slipped 1.4% ahead of Apple and Amazon results after the bell.
The Russell 2000 added 0.8% to 2,929.
Gold rose 1.0% to $4,108 an ounce as the softer dollar and lower front-end yields lent support, with the SPDR Gold Shares (NYSE: GLD ) up 1.4%.
The macro data gave the doves something to work with.
Second-quarter GDP growth slowed to an annualized 1.5% from 2.1%, well below the 2.1% consensus, while the June PCE price index fell 0.1% month-over-month and core PCE rose just 0.1%, undershooting forecasts.
Federal Reserve Chair Kevin Warsh reiterated Wednesday that policymakers would not hesitate to act on inflation, yet declined to signal a hike and was not among the three FOMC members who dissented in favor of one.
That standoff pushed the long end of the curve to fresh extremes even as equities rallied.
The 30-year Treasury yield held at 5.21%, up 1 basis point and the highest since 2007.
Rate-hike odds continued to bleed lower.
The implied probability of a 25-basis-point increase in September fell to roughly 55% from nearly 80% before the Fed’s decision.
Thursday’s Performance In Major US Indices Index Last % Change S&P 500 7,413.37 +1.3% Dow Jones 52,019 +0.8% Nasdaq 100 28,024 +3.1% Russell 2000 2,928.88 +0.8% Updated by 12:20 PM ET According to the Pro platform: The Vanguard S&P 500 ETF (NYSE: VOO ) gained 1.2%.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA ) rose 0.7%.
The Invesco QQQ Trust (NASDAQ: QQQ ) climbed 3.0%.
The iShares Russell 2000 ETF (NYSE: IWM ) advanced 0.7%.
The Technology Select Sector SPDR Fund (NYSE: XLK ) led the tape with a 4.7% gain, capturing the entire rebound in semiconductors.
At the other end, the Communication Services Select Sector SPDR Fund (NYSE: XLC ) sank 3.2% under Meta’s weight.
Defensives were sold to fund the move: the Consumer Staples Select Sector SPDR Fund (NYSE: XLP ) fell 2.2%, the Health Care Select Sector SPDR Fund (NYSE: XLV ) dropped 1.8% and the Real Estate Select Sector SPDR Fund (NYSE: XLRE ) declined 1.7%.
Among industry funds, the Invesco WilderHill Clean Energy ETF (NYSE: PBW ) topped the board with a 5.5% jump, the VanEck Gold Miners ETF (NYSE: GDX ) rose 2.7% alongside bullion and the U.S.
Global Jets ETF (NYSE: JETS ) added 1.6%.
Laggards included the SPDR S&P Insurance ETF (NYSE: KIE ), down 2.3%, the iShares U.S.
Home Construction ETF (BATS: ITB ), off 1.3%, and the First Trust Dow Jones Internet Index Fund (NASDAQ: FDN ), which slipped 0.8%.
Chips Roar Back After Bloodbath Memory and equipment names led the semiconductor snapback after Wednesday’s rout.
Micron Technology Inc. (NASDAQ: MU ) surged 17.0%, SK Hynix Inc. (NASDAQ: SKHY ) rose 15%, Lam Research Corp. (NASDAQ: LRCX ) gained 18.4%, Sandisk Corp. (NASDAQ: SNDK ) rose 23.9%, Applied Materials Inc. (NASDAQ: AMAT ) climbed 13.8%, Advanced Micro Devices Inc. (NASDAQ: AMD ) advanced 12.6% and Intel Corp. (NASDAQ: INTC ) rose 12.7%.
On an earnings call Thursday, the chief executive of Qualcomm Inc. (NASDAQ: QCOM ) called memory chip price increases “very dramatic,” underscoring the pricing backdrop behind the move.
Thursday’s Movers The session’s single biggest mover was a deal.
MarketAxess Holdings Inc. (NASDAQ: MKTX ) soared 29.7% after Intercontinental Exchange Inc. (NYSE: ICE ) agreed to acquire it for $167 per share in cash, a roughly $5.7 billion enterprise value and a 33% premium.
Corcept Therapeutics Incorporated (NASDAQ: CORT ) rallied 27.9% after Q2 revenue climbed 31.7% to $256.1 million and EPS of $0.36 blew past the $0.02 consensus, with full-year revenue guidance of roughly $1.15 billion at the midpoint landing about 15% above Street estimates.
FormFactor, Inc. (NASDAQ: FORM ) gained 26.7% on Q2 revenue of $258.2 million versus $240 million expected and adjusted EPS of $0.82, with third-quarter revenue guidance of $270 million running 9.2% above consensus.