By Niket Nishant and Ankur Banerjee July 30 Global stocks rebounded on Thursday after U.S. inflation data for June matched expectations and Microsoft earnings eased some AI spending worries, while long-term U.S. borrowing costs rose to their highest since 2007 on doubts about…
e Federal Reserve’s resolve in taming inflation. A Commerce Department report showed the Personal Consumption Expenditures Price index fell 0.1% in June, compared with a 0.1% decrease expected by economists polled by Reuters
Annually, it stood at 3.7%, in line with estimates of 3.7%. Futures on the tech-heavy Nasdaq 100 rose 1.51%, while S&P 500 and Dow futures gained 0.60% and 0.35%, respectively. Markets are at a delicate juncture, with steep declines in the shares of some of the biggest winners of the AI boom spooking investors.
South Korea’s KOSPI fell 1.23% to end its third consecutive day in the red. Earnings from Microsoft and Meta reinforced the view that investors were looking for signs that the costly AI buildout is starting to pay off. “We don’t think the AI story is over by any means, but clearly there’s scope for bumps along the way,” said Sanjiv Tumkur, head of equity research at Rathbones. Microsoft shares rose 9.02% in premarket trading after the tech major said it expects to keep generating cash through fiscal 2027.