AI Trade Revival Lifts Global Stocks as Amazon and Microsoft Deliver Strong Results
Global stocks rallied on Friday as tech giants Amazon and Microsoft delivered robust quarterly results, soothing investor concerns about the artificial intelligence (AI) trade.
The STOXX 600 index hit a record high, with futures tracking the Nasdaq 100 index rising by 1.05% and S&P 500 and Dow futures increasing by 0.32% and 0.45%, respectively.
South Korea's KOSPI leapt 17.91%, making a record comeback after heavy losses earlier in the week, while Amazon reported its strongest cloud growth in over four years and Microsoft forecasted generating cash throughout fiscal 2027.
The Bank of Japan (BOJ) held interest rates steady on Friday, signaling its resolve to push up borrowing costs, but analysts say the outlook may not improve unless the central bank raises rates. BOJ Governor Kazuo Ueda stated that inflation risks were skewed to the upside and the central bank was prepared to speed up the pace of rate hikes if monetary conditions remained accommodative.