Finance

Strong earnings results from Microsoft provided immediate relief to investors, driven by its Azure cloud business which surpassed key quarterly revenue milestones. Conversely, Meta Platforms experienced a notable downward movement after a weaker revenue forecast and elevated investment guidance renewed concerns over the capacity to monetize immediate artificial intelligence infrastructure spending.

Longer-term government borrowing costs remained highly elevated, with the 30-year U.S. Treasury yield hovering close to a 19-year peak. This persistent bond market pressure follows Federal Reserve Chairman Kevin Warsh's decision to maintain interest rates, an announcement that split the policymaking board and intensified debate over long-term inflation targets.

Global energy benchmarks eased slightly but maintained a highly volatile trajectory as market participants assessed ongoing conflict in the Middle East. Meanwhile, domestic economic metrics showed the U.S. Gross Domestic Product expanding at a slower-than-expected annualized pace of 1.5% for the second quarter, largely weighted by a surge in technology imports.