The market’s in a better mood
Thursday’s rebound in the S&P 500 came courtesy of two things investors love: good earnings and a reason to buy semis. Microsoft’s strong Azure numbers lit a fire under chip stocks, and the index finished up 1.66% after a rougher prior session.
Big Tech is still running the show
The earnings floodgates are open, and the results are basically a group chat of “AI is great” and “AI is expensive.” Microsoft surged after its cloud results, Amazon popped after beating revenue expectations, and Apple also topped estimates on iPhone strength. Meanwhile, Meta reminded everyone that one company’s victory lap is another company’s headache, with soft guidance and a big drop in free cash flow.
Chips got the confetti treatment
Semiconductor stocks were the day’s co-stars. Micron jumped, AMD climbed, and the SOXX ETF ripped higher as traders decided AI demand is still alive and kicking. That’s the kind of move that can turn a sleepy Friday open into a parade — or at least a less miserable one.
But the Fed is still lurking
The catch? Rates are still elevated after the Fed left them unchanged earlier this week, and Treasury yields are hanging around like that one friend who won’t leave the party. So yes, the market looks happier heading into Friday’s open, but investors are still balancing AI hype, lofty valuations, and the not-so-small issue of money not being cheap.
Big picture: this is a classic earnings-season tug-of-war — strong enough results can lift the whole market, but the bar is high and the Fed is not exactly handing out free lemonade.