Finance

Microsoft shares skyrocketed by over 15% following a quarterly profit that surpassed Wall Street projections and an upbeat sales forecast. The massive rally boosted the company's market valuation by $450 billion in a single session, mitigating recent anxieties that heavy investments in artificial intelligence infrastructure would not yield short-term returns.

Bond markets experienced a sharp sell-off that pushed the 30-year U.S. Treasury yield above 5.23%, marking its highest level since 2007. The fixed-income volatility was triggered by the Federal Reserve's decision to hold interest rates steady, which left market participants highly uncertain regarding the future trajectory of monetary tightening.

The Personal Consumption Expenditures price index dropped 0.1% month-over-month in June, lowering the annual inflation rate to 3.7% from 4.1%. Analysts warn the relief may be short-lived, as the cooling was primarily driven by a temporary decline in energy prices that has already begun to reverse due to ongoing Middle East conflicts.