Microsoft Surge Drives Stocks Higher as Treasury Yields Reach 19-Year Peak

U.S. stocks rallied on Thursday after Microsoft's strong earnings report led to a surge in its stock price, adding $450 billion in market value to the company.

The Dow Jones Industrial Average rose 1.2% to 52,209.57, while the S&P 500 gained 1.7% to 7,437.99 and the Nasdaq Composite was up 2.8% at 25,122.18.

Fed Chair Kevin Warsh's comments on Wednesday unsettled investors, who were concerned that the Fed would be insufficiently vigilant about long-term inflation.

The 30-year Treasury yield reached a 19-year peak after the comments, but fell short of the highest level since mid-2007.