Microsoft leads a rally on Wall Street, while worries about inflation remain in the bond market
Posted: Jul 30, 2026 / 02:13 PM PDT Updated: Jul 30, 2026 / 02:15 PM PDT NEW YORK (AP) — A monster day for Microsoft’s stock following signals that its big spending on AI is translating into profits led a powerful rebound on Wall Street Thursday, while computer-chip companies regained some of their sharp recent losses. In the bond market, though, worries remained about inflation potentially remaining high for years. The S&P 500 rallied 1.7% and more than recovered its drop from the day before, which was its 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, rallied 2.8% a day after it fell 9.8% below its record set last month.
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That leaves investors questioning whether the Fed is prepared to act if inflation worsens, or whether it is relying on financial markets to achieve the same outcome, according to Seema Shah, chief global strategist at Principal Asset Management. “If investors conclude that the latter is true, the credibility of the Fed’s inflation-fighting commitment could come under increasing scrutiny.
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Posted: Jul 30, 2026 / 02:13 PM PDT Updated: Jul 30, 2026 / 02:15 PM PDT NEW YORK (AP) — A monster day for Microsoft’s stock following signals that its big spending on AI is translating into profits led a powerful rebound on Wall Street Thursday, while computer-chip companies regained some of their sharp recent losses. In the bond market, though, worries remained about inflation potentially remaining high for years. The S&P 500 rallied 1.7% and more than recovered its drop from the day before, which was its 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, rallied 2.8% a day after it fell 9.8% below its record set last month.
