{"slug": "us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft", "title": "US stocks: Wall Street ends sharply higher, lifted by soaring Microsoft", "summary": "Wall Street ended sharply higher on Thursday, with the S&P 500 climbing 1.66% to 7,437.63, the Nasdaq gaining 2.78% to 25,122.18, and the Dow Jones rising 1.19% to 52,208.06, as Microsoft surged over 15%—adding a record US$450 billion in market value—after forecasting quarterly sales and cloud growth above expectations and easing fears about AI infrastructure spending. The PHLX chip index jumped 8.2%, led by Micron Technology up 18% and Advanced Micro Devices up 13%, while Meta Platforms tumbled on a 91% drop in free cash flow. \"Microsoft delivered yesterday, and maybe Microsoft is going to be able to move itself from the 'battleground' camp to be a 'trusted AI winner' stock,\" said Jed Ellerbroek, portfolio manager at Argent Capital Management.", "body_md": "# US stocks: Wall Street ends sharply higher, lifted by soaring Microsoft\n\nAll three major indices closed higher on Thursday\n\nWALL Street ended sharply higher on Thursday (Jul 30), with chip stocks jumping and Microsoft logging its biggest daily percentage gain in 18 years after the technology giant gave a stellar forecast that eased fears about massive spending on AI infrastructure.\n\nMicrosoft jumped over 15 per cent, boosting its stock market value by US$450 billion, the greatest-ever single-day increase for a company on Wall Street.\n\nThe tech heavyweight forecast quarterly sales and cloud growth above expectations. It also reported capital expenditures below estimates and said it expects to keep generating cash through its fiscal 2027 that has just begun.\n\nThis year, investors have been spooked by heavy spending on AI at big technology firms. Negative cash-flow reports from Alphabet and Tesla last week sparked a bout of selling in AI-linked stocks, with chip stocks also under pressure as investors questioned high valuations.\n\nMeta Platforms tumbled after the social media heavyweight reported a 91 per cent drop in second-quarter free cash flow, indicating the financial strain of its costly AI buildout.\n\n“These are true battleground stocks. Investors can’t make up their minds whether the ROI on the massive capex spending is going to be worthwhile or not,” said Jed Ellerbroek, portfolio manager at Argent Capital Management.\n\n“Microsoft delivered yesterday, and maybe Microsoft is going to be able to move itself from the ‘battleground’ camp to be a ‘trusted AI winner’ stock,” Ellerbroek said.\n\nThe PHLX chip index surged 8.2 per cent, with Micron Technology jumping 18 per cent, Sandisk soaring 26 per cent and Advanced Micro Devices up 13 per cent.\n\nAmazon rose 3.9 per cent and Apple dipped 1.4 per cent, with both companies set to report their results after the market closes. Amazon’s stock has underperformed the broader market this year due to concerns about heavy spending on AI.\n\nApple, which has not spent heavily on AI, recently overtook Nvidia to become the world’s most valuable company, with a market value of about US$4.9 trillion.\n\nThe S&P 500 climbed 1.66 per cent to end the session at 7,437.63 points. The Nasdaq gained 2.78 per cent to 25,122.18 points, while the Dow Jones Industrial Average rose 1.19 per cent to 52,208.06 points.\n\nSeven of the 11 S&P 500 sector indexes rose, led by technology , up 5.2 per cent, followed by a 1.6 per cent gain in consumer discretionary.\n\nOn Wednesday, US stocks closed sharply lower after the [Federal Reserve left interest rates unchanged](https://www.businesstimes.com.sg/international/global/divided-us-fed-leaves-rates-unchanged-warsh-vows-not-waver-inflation), with mixed messages from new Fed Chair Kevin Warsh leaving traders confused about the path of borrowing costs.\n\nBond markets remained on edge, with the yield on the 30-year Treasury bond surging to its highest level in 19 years.\n\nTraders are now only pricing in a 59 per cent chance for a rate hike at the Fed’s September meeting, according to CME FedWatch, down from 82 per cent a week ago.\n\nUS economic growth slowed in the second quarter as the trade deficit widened. The economy grew at a 1.5 per cent rate, slower than estimates of 2.1 per cent growth, data showed.\n\nA separate reading also showed US inflation slowed in June.\n\nQualcomm fell 2.6 per cent after the [chipmaker forecast fourth-quarter profit below estimates](https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/qualcomm-gives-tepid-profit-forecast-sign-phone-woes) and said revenue from Apple products would decline faster than expected.\n\nFair Isaac slumped 17 per cent. Even though the credit-scoring giant lifted its annual profit and revenue forecasts, they remained below analysts’ estimates. [Starbucks rose 1.6 per cent](https://www.businesstimes.com.sg/companies-markets/starbucks-results-show-its-turnaround-bid-gaining-momentum) after the world’s largest coffee chain raised its annual sales and profit forecasts.\n\nAnalysts on average expect S&P 500 aggregate second-quarter earnings to jump 40 per cent from a year ago, with AI-related stocks accounting for much of that growth, according to LSEG I/B/E/S.\n\nStrong earnings forecasts and a recent decline in share prices have left the S&P 500 trading at about 20 times expected earnings, just above its 10-year average of 19, according to LSEG data.\n\nAcross the US stock market, advancing stocks outnumbered falling ones by a 2.2-to-one ratio. Volume on US exchanges was relatively heavy, with 18.0 billion shares traded, compared to an average of 17.2 billion shares over the previous 20 sessions. REUTERS\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. 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Free.\n\nShare with us your feedback on BT's products and services", "url": "https://wpnews.pro/news/us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/us-stocks-wall-street-ends-sharply-higher-lifted-soaring-microsoft", "published_at": "2026-07-30 21:51:43+00:00", "updated_at": "2026-07-30 21:53:01.476152+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-products", "ai-startups"], "entities": ["Microsoft", "Alphabet", "Tesla", "Meta Platforms", "Micron Technology", "Advanced Micro Devices", "Apple", "Nvidia"], "alternates": {"html": "https://wpnews.pro/news/us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft", "markdown": "https://wpnews.pro/news/us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft.md", "text": "https://wpnews.pro/news/us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft.txt", "jsonld": "https://wpnews.pro/news/us-stocks-wall-street-ends-sharply-higher-lifted-by-soaring-microsoft.jsonld"}}