Finance

Investor reactions to mega-cap tech earnings split dramatically over capital expenditure transparency. Microsoft shares surged more than 15% after its cloud division reached a historic revenue milestone and alleviated aggressive spending concerns, while Meta Platforms plummeted about 9% as Wall Street grew anxious over the lack of concrete timelines for artificial intelligence monetization.

Fixed-income markets experienced a significant shift as the 30-year Treasury yield surged past 5.2%, reaching a peak unseen since mid-2007. The move follows the Federal Reserve's decision to maintain interest rates under Chairman Kevin Warsh, which stoked broader fears regarding prolonged structural inflation.

Fresh government data shows the U.S. economy slowed to an annualized growth rate of 1.5% in the second quarter, underperforming initial forecasts due to lower government spending and declining inventories. Concurrently, the personal consumption expenditures price index aligned with estimates, signaling moderated consumer price pressures.