Boosted by Microsoft's strong results and a rebound in semiconductor stocks, the three major New York stock indexes opened higher.
As of 10:07 a.m. on the 30th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average rose 327.44 points, or 0.63%, from the previous session to 51,921.58. The Standard & Poor's (S&P) 500 advanced 92.74 points, or 1.27%, to 7,408.89, and the Nasdaq composite jumped 593.00 points, or 2.43%, to 25,035.94.
Microsoft's results eased market concerns about large-scale artificial intelligence (AI) investments. Microsoft said it posted adjusted earnings per share (EPS) of $4.74 and revenue of $90.01 billion in fiscal fourth-quarter 2026 results released after the close the previous day, topping the market outlook for EPS of $4.24 and revenue of $87.62 billion.
The company also guided next-quarter revenue at $89.85 billion to $90.95 billion, above the market estimate of $89.66 billion.
While both results and forward guidance beat expectations, the capital expenditure outlook came in below Wall Street forecasts. With Microsoft projecting continued cash generation in fiscal 2027, the stock surged 14.40%.
Investors are also watching earnings from Apple and Amazon scheduled after the close. A rebound in semiconductor stocks, which had recently seen heavy selling, also lifted sentiment. The Philadelphia Semiconductor Index rose 7.10%.
The market also got the personal consumption expenditures (PCE) price index, watched by the Federal Reserve (Fed), and second-quarter gross domestic product (GDP). According to the Commerce Department, the core PCE price index excluding food and energy rose 0.1% in June from the prior month, below the 0.3% increase in May. The headline PCE price index fell 0.1% from the prior month, far below May's 0.5% rise.
Real GDP in the second quarter grew 1.5% from the previous quarter on a seasonally adjusted annualized basis. Compared with the 2.1% growth in the first quarter, it slowed by 0.6 percentage point. The shift to a decline in federal government spending and smaller increases in investment and exports weighed on growth.
Moves in the bond market also emerged as a key focus. After the Federal Open Market Committee (FOMC) held its benchmark rate steady the previous day, the 30-year U.S. Treasury yield traded above 5.2% for the first time since 2007. The probability of a rate hike in September reflected in the futures market fell to 57.4%.
Anna Rathbun, CEO of Grenadilla Advisory, said, "The market is confusing, and the move in Government Bonds yields explains it," adding, "However, given today's drop in the PCE reading, holding rates steady is justified."
By sector, technology and consumer discretionary outperformed, while communication services and consumer staples lagged.
Meta's second-quarter EPS came in at $6.18, below the market estimate of $7.22. It also raised the lower end of its full-year capital expenditure outlook to $130 billion from $125 billion, keeping the upper end at $145 billion, sending the stock down 9.26%.
Starbucks rose 1.64% after raising its full-year outlook and reporting same-store sales up 7.9%.
Qualcomm's third-quarter EPS was $2.21, missing the market forecast of $2.23. Citing an expense burden from memory shortages as the reason, it also issued fourth-quarter guidance below market expectations, and the stock fell 4.59%.
Crude prices fell. At the same time, West Texas Intermediate (WTI) for September delivery was trading at $83.75 a barrel, down 0.84% from the previous session.