Wall Street Rises Across the Board as Microsoft, Chip Stocks Rally; Nasdaq Gains 2.8%

U.S. stocks closed broadly higher on July 30, lifted by strong Microsoft results and a rebound in semiconductor shares.

The Dow Jones Industrial Average rose 613.92 points, or 1.19%, to 52,208.06 at the close on the New York Stock Exchange. The S&P 500 gained 121.48 points, or 1.66%, to 7,437.63. The tech-heavy Nasdaq Composite climbed 679.24 points, or 2.78%, to 25,122.18.

Microsoft surged 15.51% after posting better-than-expected earnings after the previous session's close, buoying the broader market. The company's market capitalization increased by $450 billion in a single day. Reuters said that marked the biggest one-day increase in market value ever for a single stock listed in New York.

Seo Sang-young, an executive director at Mirae Asset Securities, said Microsoft's fiscal fourth-quarter results topped expectations as growth in Azure and its artificial intelligence business accelerated. Goldman Sachs and Bernstein also raised their price targets, helping drive the stock higher.

He added that a sharp increase in Microsoft 365 Copilot users also eased some concerns about profitability.

The Philadelphia Semiconductor Index jumped 8.19% as investor appetite for chip shares recovered. Micron Technology rose 18.43%, AMD gained 13.00% and Intel climbed 11.30%, with each posting a double-digit advance. SK Hynix ADRs also jumped 17.52%.

Oil prices fell. The decline appeared to reflect discussions, led by Saudi Arabia, on forming a multinational coalition to guarantee freedom of navigation in the Red Sea.

Brent crude for September delivery settled at $86.88 a barrel on ICE Futures Europe, down 1.4% from the previous session. West Texas Intermediate crude for September delivery settled at $83.59 a barrel on the New York Mercantile Exchange, down 1.0%.

Lee Su, Hankyung.com reporter, 2su@hankyung.com