Stock Market Today: Microsoft Sparks Chip Rebound, SanDisk Up 24%

The Nasdaq 100 led with a 3.1% advance, though a 19-year high in long-dated Treasury yields kept the rally narrow.

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.

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.