Wall Street rebounded on Thursday as strong Microsoft earnings and softer oil prices helped calm investors after a sharp sell-off in the previous session. The move higher came even as the market continued to weigh the impact of rising US Treasury yields.
Microsoft was a major driver of the recovery, with its shares jumping more than 15 per cent after results that were supported by its cloud business and artificial intelligence-related demand. The rally in one of the market’s biggest companies gave a significant lift to broader US indexes.
The rebound followed a difficult Wednesday, when major US indices fell more than 1.5 per cent. According to the snippet, investors reacted negatively to a press conference by new Federal Reserve Chair Kevin Warsh, seeing a disconnect between inflation-fighting rhetoric and the broader market backdrop.
A pullback in oil prices also helped sentiment by easing some inflation pressure concerns. Together, lower crude prices and Microsoft’s outsized gains helped US stocks recover, although bond yields and Federal Reserve signals remained central to the market outlook.
