Risk-on, but not all the way
the market showed a classic “bad news is good news” vibe Thursday. The Dow added about 614 points, the S&P 500 climbed 1.66%, and the Nasdaq surged 2.78% as investors cheered softer growth and tame inflation data.
Microsoft stole the show
Microsoft was the day’s biggest drama queen, rocketing 15.5% after posting 43% cloud revenue growth — its fastest pace since 2022. The kicker? Its capex guidance didn’t blow past expectations, which helped soothe nerves that AI spending is becoming a bottomless money pit.
Meta got punished for not being dreamy enough
Meta, on the other hand, dropped 8% after guidance disappointed and investors started asking the very annoying question that matters: when does all this AI spending actually turn into revenue? Meanwhile, second-quarter GDP slowed to a 1.5% annualized pace, June core PCE rose just 0.1%, and initial jobless claims ticked up to 197,000. Translation: the economy cooled, inflation stayed friendly, and stocks took the hint.
Big picture
The Fear & Greed Index nudged up to 39 from 38, but it stayed in the “Fear” zone — basically the market’s version of smiling for a photo while still holding your wallet tight. Investors are now watching Chevron, ExxonMobil, and Colgate-Palmolive for the next batch of clues on whether this rally has legs or is just a caffeine rush.