Finance

Shares of Microsoft jumped over 15% after its Azure cloud unit surpassed $100 billion in revenue for the first time, reassuring investors of strong monetization in artificial intelligence. Conversely, Meta Platforms shares fell roughly 9% as its revenue guidance failed to satisfy market expectations regarding its massive capital expenditures on AI infrastructure.

The Federal Reserve voted to keep its benchmark interest rate unchanged in a target range of 3.5% to 3.75%, though three committee members dissented in favor of a rate hike. Long-dated Treasury yields moved toward multiyear highs as investors weighed the central bank's stance against persistent inflation pressures and rising energy costs.

Fresh government data showed that U.S. economic growth slowed to an annual rate of 1.5% in the second quarter, coming in below the consensus estimate of 1.8%. Meanwhile, the personal consumption expenditures price index fell slightly in June, bringing the annual inflation rate down to 3.7% in line with market forecasts.