Finance

Shares of Microsoft jumped up to 15% after reporting that its Azure cloud revenue crossed the $100 billion milestone for the first time. This positive surprise alleviated widespread investor anxieties regarding heavy artificial intelligence expenditures and ignited a massive rally across major chipmakers, including Micron Technology and Advanced Micro Devices.

The Federal Reserve chose to leave current benchmark interest rates unchanged, sparking widespread investor concern that persistent inflation could prove difficult to manage. The decision was notable for featuring three dissenting votes calling for a rate hike, a division not seen at the central bank in roughly a decade.

The U.S. economy slowed down in the second quarter, expanding at an annualized rate of 1.5% due to declines in government spending and private inventories. Despite missing broad expectations, the economic underlying demand remained solid, bolstered by a 2.1% increase in personal consumer expenditures.