US stocks rally as Microsoft earnings lift AI, chip shares

U.S. stock markets staged a powerful rebound on Thursday, July 30, 2026, led by a surge in technology shares after Microsoft delivered strong quarterly results that reassured investors about the profitability of artificial intelligence investments. The rally snapped a multi-day losing streak and recovered most of the prior day's sharp losses.

The Nasdaq Composite jumped 2.6%, its best single-day performance since mid-June, while the S&P 500 gained 1.5%. The Dow Jones Industrial Average climbed by more than 550 points. The recovery was driven overwhelmingly by Microsoft, whose shares soared approximately 17% after the company reported quarterly revenue of $90 billion, exceeding analyst expectations. Crucially, revenue from its Azure cloud business grew 43%, demonstrating robust demand for AI-powered services.

Microsoft's performance ignited a broad rally across the semiconductor sector, which had suffered steep declines earlier in the week. The iShares Semiconductor ETF rose about 8%. Micron Technology jumped over 17%, Advanced Micro Devices gained more than 13%, and South Korea's SK Hynix surged. The rally provided a stark contrast to the continued weakness in Meta Platforms,...