Microsoft's Beat Eases Fed Uncertainty Fears

The U.S. stock markets experienced significant volatility on Thursday due to uncertainty surrounding the Federal Reserve's policy outlook.

A sharp selloff was sparked by the ambiguity, but investor sentiment received a boost when Microsoft reported forecast-beating results that alleviated concerns over escalating AI spending by major tech firms.

The tech giant's premarket trading saw a nearly 9% surge in shares, with its current-quarter sales and cloud growth projections exceeding expectations.

However, not all tech stalwarts fared well, as Meta Platforms and Qualcomm declined due to unfavorable financial reports. The Nasdaq slumped 10% from its early June peak, highlighting unease within AI-linked sectors.