US sharemarkets rebounded strongly overnight as investors returned to technology stocks following upbeat earnings from Microsoft, with semiconductor shares leading a broad market recovery after Wednesday’s sharp sell-off.
The Nasdaq Composite jumped 2.8% to 25,122.18, snapping a six-session losing streak. The S&P 500 gained 1.7% to 7,437.63, while the Dow Jones Industrial Average climbed 613.92 points, or 1.2%, to 52,208.06.
Microsoft surged 16% after reporting strong growth in its Azure cloud business, helping reignite optimism around artificial intelligence spending. Semiconductor stocks also rebounded sharply, with the iShares Semiconductor ETF rising more than 8%. Micron Technology jumped 18%, Advanced Micro Devices gained more than 13%, and South Korea’s SK Hynix surged over 17%.
The rally contrasted with continued weakness in Meta Platforms, which fell 8% after issuing a softer revenue outlook and reporting a sharp decline in quarterly free cash flow. Investors remain focused on which companies are successfully converting heavy AI investment into earnings growth.
Bond markets were relatively stable after Wednesday’s sharp move higher in long-term Treasury yields following the Federal Reserve’s decision to leave interest rates unchanged. Attention now turns to the latest earnings from Amazon and Apple, released after the closing bell.
Australian Market Outlook
Australian shares are expected to open sharply higher after Wall Street staged a broad-based recovery led by technology stocks. S&P/ASX 200 futures are up 99 points, or 1.1%, to 9,010. Microsoft’s strong results helped lift the broader semiconductor sector, with the Philadelphia Semiconductor Index rising 8.2%. After the closing bell, Amazon rose more than 8% after issuing stronger-than-expected guidance, while Apple fell 4% as investors were left disappointed by its quarterly revenue performance. The local market is likely to take its lead from the renewed strength in global technology shares as investors look ahead to the start of a new trading month.
