U.S. stocks gained on Thursday as Microsoft's stellar forecasts soothed concerns about massive AI spending by companies, while investors also parsed fresh GDP and inflation data a day after the Federal Reserve's rate decision.
Microsoft jumped around 15% after the company forecast current-quarter sales and cloud growth above expectations, capital expenditure below estimates and said it expects to keep generating cash through its fiscal 2027 that just began. Investors have been spooked by rising AI costs at big technology firms even as they report strong earnings.
