{"id":4195,"date":"2026-07-31T13:34:23","date_gmt":"2026-07-31T13:34:23","guid":{"rendered":"https:\/\/smartinvestingschronicle.com\/index.php\/2026\/07\/31\/stocks-settle-sharply-higher-as-microsoft-leads-a-surge-in-tech-stocks\/"},"modified":"2026-07-31T13:34:23","modified_gmt":"2026-07-31T13:34:23","slug":"stocks-settle-sharply-higher-as-microsoft-leads-a-surge-in-tech-stocks","status":"publish","type":"post","link":"https:\/\/smartinvestingschronicle.com\/index.php\/2026\/07\/31\/stocks-settle-sharply-higher-as-microsoft-leads-a-surge-in-tech-stocks\/","title":{"rendered":"Stocks Settle Sharply Higher as Microsoft Leads a Surge in Tech Stocks"},"content":{"rendered":"
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The\u00a0S&P 500 Index ($SPX) (SPY) on Thursday closed up +1.66%,\u00a0the Dow Jones Industrial Average ($DOWI)\u00a0(DIA) closed up +1.19%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +3.36%.\u00a0 September E-mini S&P futures (ESU26) rose +1.65%, and September E-mini Nasdaq futures (NQU26) rose +3.28%.<\/p>\n

Stock indexes settled sharply higher on Thursday after strong growth at Microsoft reassured investors that massive spending on artificial intelligence is starting to pay off.\u00a0 Microsoft surged more than +15% after reporting that Q4 Azure and other cloud services revenue ex-forex rose +43%, better than the consensus of +39.3% and the fastest quarterly growth in four years.\u00a0 Microsoft’s positive earnings also eased AI spending concerns and fueled a sharp rally in chipmakers and AI-infrastructure stocks, pushing the overall market even higher.\u00a0 The markets will get another look at megacap earnings when Amazon.com and Apple report after Thursday\u2019s close.<\/p>\n

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On the negative side, Meta Platforms fell more than -7% after a disappointing revenue forecast.\u00a0 Also, bond yields rose on Thursday for a second day on concerns that Fed Chair Warsh won\u2019t manage to curb inflation that has run above target for five straight years after the FOMC kept interest rates unchanged on Wednesday.\u00a0 The 10-year T-note yield rose +3 bp to 4.67%.<\/p>\n

Thursday\u2019s US economic news was mixed for stocks.\u00a0 Q2 GDP growth was below expectations despite strong consumer spending, but weekly jobless claims rose less than expected, and the core PCE price index eased as expected.<\/p>\n

US weekly initial unemployment claims rose +9,000 to 197,000, showing a stronger labor market than expectations of 200,000.<\/p>\n

US Jun personal spending rose +0.3% m\/m, weaker than expectations of +0.4% m\/m, although May personal spending was revised upward to +0.9% m\/m from the previously reported +0.7% m\/m.\u00a0 Jun personal income rose +0.2% m\/m, weaker than expectations of +0.3% m\/m.<\/p>\n

The US Jun core PCE price index, the Fed’s preferred inflation gauge, eased to +3.3% y\/y from +3.4% y\/y in May, right on expectations.<\/p>\n

US Q2 GDP rose +1.5% (q\/q annualized), weaker than expectations of +2.0%, despite Q2 personal consumption rising +3.2%, stronger than expectations of +2.3%.\u00a0 The Q2 core PCE price index eased to +3.4% from +4.4% in Q1, a slower pace of increase than expectations of +3.5%.<\/p>\n

Sep WTI crude oil prices (CLU26) gave up an overnight advance and fell more than -1% on Wednesday amid hopes for progress toward a diplomatic solution to the war in the Middle East.\u00a0 Pakistan’s Foreign Ministry said today that negotiations between the US and Iran are “ongoing” to restore stability, particularly in the Strait of Hormuz.\u00a0 \u00a0Also, shipping through the strait has picked up in recent days, with the US claiming its navy escorted some tankers across the waterway.<\/p>\n

Tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf.\u00a0 US Central Command said Thursday that the US launched airstrikes against dozens of military targets in Iran aimed at degrading Iran’s ability to threaten US troops.\u00a0 Iran retaliated by launching drones and missiles into Kuwait and Jordan.\u00a0 Also, diplomatic attempts to reopen the Strait of Hormuz appear to be at an impasse.\u00a0 Iranian Deputy Foreign Minister Gharibabadi said Oman’s proposal for a route through the Strait of Hormuz, with 50% under Iran’s control and 50% under Oman’s, would not address Iran’s concerns and that the inbound passage and part of the outbound channel must be entirely under Iran’s control.<\/p>\n

The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks.\u00a0 The markets are awaiting results from a raft of megacap technology companies this week, including Microsoft and Meta Platforms today, and Amazon.com and Apple on Thursday.\u00a0 Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1\u2019s blowout earnings of +30%, which was more than double the +12% analysts had expected.\u00a0 AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500’s earnings-per-share growth in Q2.\u00a0So far, earnings results have been positive, with 86% of the 272 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.\u00a0<\/p>\n

The markets are discounting a 66% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.<\/p>\n

Overseas stock markets settled mixed on Thursday.\u00a0 The Euro Stoxx 50 closed up +1.53%.\u00a0 China’s Shanghai Composite fell to a 1-week low and closed down -0.62%.\u00a0 Japan’s Nikkei-225 Stock Average closed up +0.71%.<\/p>\n

Interest Rates<\/strong><\/p>\n

September 10-year T-notes (ZNU6) on Thursday closed down -7.5 ticks.\u00a0 The 10-year T-note yield rose +2.5 bp to 4.665%. \u00a0T-notes moved lower on Thursday amid reduced safe-haven demand with the sharp rally in stocks.\u00a0 T-notes were also pressured by some negative carryover from Wednesday when the FOMC kept interest rates unchanged, fueling concern the Fed is behind the curve in addressing inflation, which has been above the Fed\u2019s target for more than five years.\u00a0<\/p>\n

T-notes recovered from their worst level after Thursday\u2019s US economic news showed Q2 GDP growing less than expected and the Jun core PCE price index easing as expected, dovish factors for Fed policy.\u00a0 Also, Thursday\u2019s =1% decline in WTI crude oil lowered inflation expectations, a supportive factor for T-notes.<\/p>\n

European government bond yields moved lower on Thursday.\u00a0 The 10-year German bund yield fell -0.6 bp to 3.155%.\u00a0 The 10-year UK gilt yield fell -5.2 bp to 4.984%.<\/p>\n

Eurozone Q2 GDP rose +0.4% q\/q and +1.0% y\/y, stronger than expectations of +0.2% q\/q and +0.7% y\/y.<\/p>\n

The Eurozone Jul economic confidence indicator rose +1.5 to a 5-month high of 96.9, stronger than expectations of 96.0.<\/p>\n

The Eurozone Jun unemployment rate was unchanged at 6.3%, slightly weaker than expectations of 6.2%.<\/p>\n

German Jul CPI (EU harmonized) rose to +2.8% y\/y from +2.4% y\/y in Jun, right on expectations.\u00a0<\/p>\n

As expected, the BOE kept its benchmark rate unchanged at 3.75% in a 6-3 vote and said there were “clear signs” that domestic inflationary pressures are easing and “little evidence” so far that the energy shock has stoked wage demands and higher prices elsewhere.<\/p>\n

The markets are discounting an 84% chance of a +25 bp ECB rate hike at their next policy meeting on September 10.<\/p>\n

US Stock Movers<\/strong><\/p>\n

Chipmakers and AI-infrastructure stocks rallied sharply on Thursday amid better-than-expected earnings from Lam Research.\u00a0 The Philadelphia Stock Exchange Semiconductor Index ($SOX) closed up more than +8%.\u00a0 Nebius Group NV\u00a0(NBIS) closed up more than +25% to lead gainers in the Nasdaq 100, and Sandisk\u00a0(SNDK) closed up more than +24% to lead gainers in the S&P 500.\u00a0 Also,\u00a0Lam Research (LRCX)\u00a0closed up more than +19%,\u00a0and Micron Technology (MU) closed up more than +18%.\u00a0 In addition,\u00a0Applied Materials\u00a0(AMAT) and Western Digital (WDC) closed up more than +14%, and\u00a0Advanced Micro Devices\u00a0(AMD) closed up more than +13%.\u00a0 Finally, Seagate Technology Holdings Plc (STX), Intel\u00a0(INTC), and\u00a0Marvell Technology\u00a0(MRVL) closed up more than +11%, and\u00a0ARM Holdings Plc\u00a0(ARM) and ASML Holding NV (ASML) closed up more than +6%.\u00a0<\/p>\n

Cryptocurrency-exposed stocks soared on Thursday as Bitcoin\u00a0(^BTCUSD)\u00a0rose more than +2%.\u00a0 Riot Platforms (RIOT) closed up more than +20%, and Galaxy Digital Holdings\u00a0(GLXY) and MARA Holdings (MARA) closed up more than +17%.\u00a0 Also,\u00a0Strategy\u00a0(MSTR) and\u00a0Circle Internet Group\u00a0(CRCL) closed up more than +4%, and\u00a0Coinbase Global (COIN) closed up more than +2%.<\/p>\n

Most software stocks tumbled on Thursday after recent sharp gains as investors rotate back into chipmakers and exit the software sector. \u00a0Thomson Reuters\u00a0(TRI) closed down more than -7%, and Workday\u00a0(WDAY), Adobe Systems\u00a0(ADBE),\u00a0Atlassian Corp (TEAM), and\u00a0Intuit (INTU) closed down more than -5%.\u00a0 Also,\u00a0Autodesk\u00a0(ADSK), ServiceNow\u00a0(NOW),\u00a0and\u00a0Palantir Technologies\u00a0(PLTR) closed down more than -4%, and\u00a0Salesforce (CRM) closed down more than -4% to lead losers in the Dow Jones Industrials.<\/p>\n

Corcept Therapeutics\u00a0(CORT)\u00a0closed up more than +26% after raising its full-year revenue forecast to $1.1 billion to $1.2 billion from a previous estimate of $950 million to $1.05 billion, stronger than the consensus of $999.6 million.<\/p>\n

EMCOR Group\u00a0(EME)\u00a0closed up more than +19% after reporting Q2revenue of $5.15 billion, well above the consensus of $4.71 billion, and boosting its full-year revenue forecast to $20 billion to $20.5 billion from a previous forecast of $18.5 billion to $19.25 billion, stronger than the consensus of $19 billion.\u00a0<\/p>\n

Quanta Services\u00a0(PWR)\u00a0closed up more than +17% after reporting Q2 revenue of $9.56 billion, well above the consensus of $8.52 billion, and raising its full-year revenue forecast to $39.3 billion to $39.7 billion from a previous forecast of $34.7 billion to $35.2 billion, stronger than the consensus of $35.02 billion.\u00a0<\/p>\n

Microsoft\u00a0(MSFT)\u00a0closed up more than +15% to lead gainers in the Dow Jones Industrials after\u00a0reporting Q4 Azure and other cloud services revenue ex-forex rose +43%, better than the consensus of +39.3% and the fastest quarterly growth in four years.\u00a0<\/p>\n

Huntington Ingalls\u00a0(HII) closed up more than +14% after reporting Q2 sales and service revenue of $3.42 billion, well above the consensus of $3.15 billion.\u00a0<\/p>\n

Chipotle Mexican Grill\u00a0(CMG)\u00a0closed up more than +12% after reporting Q2 comparable sales rose +2.2%, better than the consensus of +1.33%.<\/p>\n

Baxter International\u00a0(BAX) closed up more than +7% after reporting Q2 adjusted EPS of 56 cents, above the consensus of 37 cents, and forecasting full-year adjusted EPS of $1.95 to $2.15, stronger than the consensus of $1.92.<\/p>\n

Avery Dennison\u00a0(AVY)\u00a0closed up more than +4% after reporting Q2 net sales of $2.46 billion, better than the consensus of $2.30 billion.\u00a0<\/p>\n

Alnylam Pharmaceuticals\u00a0(ALNY)\u00a0closed down more than -28% to lead losers in the Nasdaq 100 after reporting Q2 revenue of $1.29 billion, below the consensus of $1.31 billion, and cutting its full-year product revenue forecast to $4.7 billion to $5.1 billion from a previous forecast of $4.9 billion to $5.3 billion, weaker than the consensus of $5.1 billion.<\/p>\n

Fair Isaac\u00a0(FICO) closed down more than -17% to lead losers in the S&P 500 after reporting Q3 revenue of $674.2 million, weaker than the consensus of $681.8 million, and forecasting full-year revenue of $2.53 billion, below the consensus of $2.56 billion.<\/p>\n

Norwegian Cruise Line Holdings Ltd\u00a0(NCLH) closed down more than -9% after cutting its annual forecasts and said bookings for the next 12 months are weak.<\/p>\n

Crocs\u00a0(CROX)\u00a0closed down more than -8% after forecasting Q3 adjusted EPS of $3.20 to $3.30, weaker than the consensus of $3.53.\u00a0<\/p>\n

Meta Platforms\u00a0(META) closed down more than -7% after forecasting Q3 revenue of $61 billion to $64 billion, the midpoint below the consensus of $63.17 billion.<\/p>\n

Carvana\u00a0(CVNA)\u00a0closed down more than -7% after forecasting full-year adjusted Ebitda of $2.7 billion to $3.0 billion, the midpoint below the consensus of $2.99 billion.<\/p>\n

Earnings Reports (7\/31\/2026)<\/strong><\/p>\n

AbbVie Inc (ABBV), AES Corp\/The (AES), Ares Management Corp (ARES), Cboe Global Markets Inc (CBOE), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Dominion Energy Inc (D), Eaton Corp PLC (ETN), ExxonMobil Holdings Corp (XOM), Federal Realty Investment Trust (FRT), Franklin Resources Inc (BEN), Linde PLC (LIN), LyondellBasell Industries NV (LYB), Moderna Inc (MRNA), T Rowe Price Group Inc (TROW).<\/p>\n

On the date of publication,<\/p>\n

Rich Asplund<\/p>\n

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.<\/p>\n

For more information please view the Barchart Disclosure Policy<\/p>\n

here.<\/p>\n

\u00a0<\/p>\n

\n More news from Barchart\n<\/p>\n

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The\u00a0S&P 500 Index ($SPX) (SPY) on Thursday closed up +1.66%,\u00a0the Dow Jones Industrial Average ($DOWI)\u00a0(DIA) closed up +1.19%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +3.36%.\u00a0 September E-mini S&P futures (ESU26) rose +1.65%, and September E-mini Nasdaq futures (NQU26) rose +3.28%. Stock indexes settled sharply higher on Thursday after strong growth at Microsoft reassured […]<\/p>\n","protected":false},"author":1,"featured_media":4196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/4195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/comments?post=4195"}],"version-history":[{"count":0,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/posts\/4195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/media\/4196"}],"wp:attachment":[{"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/media?parent=4195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/categories?post=4195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smartinvestingschronicle.com\/index.php\/wp-json\/wp\/v2\/tags?post=4195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}