NEW YORK (AP) — A monster day for Microsoft following signals that its big spending on AI is translating into profits led a powerful rebound on Wall Street, while AI stocks regained some of their sharp recent losses.
The S&P 500 rallied 1.7% Thursday and more than recovered its drop from the prior day. The Dow Jones Industrial Average rose 1.2%, and the Nasdaq composite jumped 2.8%.
Microsoft delivered a bigger profit than analysts expected, which helped offset Meta Platforms's drop after it raised its forecast for AI investments.
Longer-term Treasury yields held relatively steady a day after soaring on worries about inflation. Oil prices eased.