U.S. stocks rallied Thursday, driven by a combination of strong technology sector earnings and fresh data suggesting inflation is cooling. The advance was led by a surge in Microsoft shares after the company reported better-than-expected quarterly profits, propelled by strong growth in its Azure cloud computing business.
Investor sentiment was further buoyed by the release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, which showed a moderation in price pressures. This dual catalyst of robust corporate performance in a key sector and signs of easing inflation fueled optimism that the central bank may have room to consider interest rate cuts later this year.
Market Impact: The Nasdaq Composite surged +2.56% and the S&P 500 climbed +1.24%.