Bond market shows persistent inflation worries despite rally
Microsoft Corp. shares surged 15.5% on Thursday in the company’s best single-day gain in nearly 18 years after it reported quarterly profits that exceeded Wall Street expectations, the Associated Press reported.
The rally was driven by strong growth in Microsoft’s Azure cloud business. Chief Executive Satya Nadella said the results reflect how customers are using Microsoft’s platform to move into artificial intelligence, signaling that the company’s heavy spending on AI is translating into earnings.
The broader market followed Microsoft higher. The S&P 500 rallied 1.7% and more than recovered its drop from the previous session, which had been the worst in seven weeks. The Dow Jones Industrial Average jumped 613 points, or 1.2%. The Nasdaq composite, which is full of artificial-intelligence stocks, gained 2.8% a day after it fell 9.8% below its record set last month.
Computer-chip companies also regained some of their sharp recent losses, the AP reported.
In the bond market, however, worries remained about inflation potentially remaining high for years, according to the AP.