Tech Stocks Recover Amid Mixed Signals from Fed and Microsoft Earnings

Global stocks bounced back on Thursday after US inflation data for June came in line with expectations, easing worries about the impact of AI spending on tech companies. Microsoft's strong earnings report helped ease concerns that the costly buildout of artificial intelligence was not paying off.

The Nasdaq 100 futures rose 1.51%, while S&P 500 and Dow futures gained 0.60% and 0.35%, respectively. The US Commerce Department reported a 0.1% decrease in the Personal Consumption Expenditures Price index for June, matching economist estimates of 3.7% annually.

Bond yields remained under pressure, however, with the 30-year Treasury bond yield trading at 19-year highs and reaching 5.2124%. Traders struggled to gauge the Federal Reserve's next move after Chair Kevin Warsh offered mixed messages on monetary policy and inflation outlook.