US Stock Market Live: Nasdaq Surges, AI Strength Outpaces Broader Weakness

NEW YORK, July 30, 2026, 12:08 p.m. EDT

The S&P 500 climbed 1.29% to finish at 7,410.61. The Nasdaq advanced 2.43% and the Dow increased by 0.68%.
Over 70% of S&P 500 stocks declined. Just nine Dow Jones components posted gains.
Microsoft NASDAQ:MSFT surged 15.0%. Meta Platforms NASDAQ:META slid 9.0%.

U.S. equities rose at midday Thursday as trading in cash markets continued. Gains were largely fueled by Microsoft and semiconductor stocks, with the Nasdaq Composite outperforming other major indices.

Gains masked low engagement, as over 70% of S&P 500 stocks slipped. Twenty-one out of 30 Dow components also finished lower.

The divergence in breadth was pronounced. The capitalization-weighted S&P 500 proxy rose 0.97%, while the equal-weight version fell 0.83%.

The 1.79 percentage point gap stands out as the strongest indication from investors on Thursday. This points to confidence in AI-related areas instead of a general increase in risk appetite.

Midday market overview — most recent trades as of 11:52 a.m. EDT

Market proxy	Last	Day change	Investor read-through
SPDR S&P 500 ETF Trust NYSEARCA:SPY	$736.50	+0.97%	Gains for large-cap shares
Invesco QQQ Trust NASDAQ:QQQ	$680.39	+2.82%	Megacap technology stocks outperformed
SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA)	$518.32	+0.56%	Leading price-weighted names outweighed broader declines
iShares Russell 2000 ETF NYSEARCA:IWM	$290.60	+0.70%	Tech sector outpaced small cap performance
Invesco S&P 500 Equal Weight ETF NYSEARCA:RSP	$213.95	-0.83%	Most large caps moved lower

Figures represent the most recent trades as of about 11:52 a.m. EDT.

Microsoft jumped to $449.12 following its fiscal-year earnings. The company reported annual revenue topping $331 billion and Azure crossing $100 billion. “It was a very strong close to what was a record fiscal year for us,” Chief Executive Satya Nadella said. Microsoft

The company reported quarterly operating cash flow of $55.4 billion. Free cash flow totaled $19.6 billion, even with significant infrastructure investments. Microsoft anticipates it will stay free-cash-flow positive in fiscal 2027.

Meta shares declined to $532.79 even as revenue climbed by 28%. The company reported operating cash flow of $31.86 billion, yet free cash flow stood at just $784 million. Capital expenditures amounted to $31.08 billion.

Meta now forecasts its 2026 capital expenditure at $130 billion to $145 billion, tightening the previous projection of $125 billion to $145 billion.

AI cash flow overview — most recent reported quarter

Company	Operating cash flow	Free cash flow	FCF as share of operating cash flow	Stock move
Microsoft NASDAQ:MSFT	$55.40 billion	$19.60 billion	35.4%	+15.0%
Meta Platforms NASDAQ:META	$31.86 billion	$0.78 billion	2.5%	-9.0%

Company-reported figures are used in ratios. Definitions for free cash flow and lease accounting may vary.

Microsoft’s ratio stood at about 14 times that of Meta’s. This contrast sheds light on the divergent performances of the two stocks. Investors favored clear AI-related revenue and preserved cash, rather than just reduced expenditures.

“The concern is no longer just how much these companies are spending,” said Anna Rathbun, chief executive of Grenadilla Advisory. Rathbun noted that competition could keep AI budgets elevated, even in a higher rate environment. Reuters

Semiconductor shares advanced alongside Microsoft. Micron Technology NASDAQ:MU surged 15.0%. Lam Research NASDAQ:LRCX advanced 18.3%, and Advanced Micro Devices NASDAQ:AMD increased 12.2%.

Lam posted a record quarterly revenue figure of $6.72 billion, with its operating margin rising to 37.4% from 35.0% in the previous quarter. In contrast, Qualcomm NASDAQ:QCOM declined after providing a softer profit outlook.

AI-related stocks — as of 11:52 a.m. EDT

Company	Last	Day change	Main driver
Micron Technology NASDAQ:MU	$849.54	+14.96%	Recovery in memory and AI-chip markets
Lam Research NASDAQ:LRCX	$298.41	+18.25%	Posted highest-ever revenue and margins
Advanced Micro Devices NASDAQ:AMD	$481.94	+12.19%	Semiconductors bounce back
Qualcomm NASDAQ:QCOM	$151.75	-2.52%	Weaker outlook for fourth-quarter profit

The macro environment was still uneven. Advance second-quarter GDP increased at an annual rate of 1.5%. Economists’ projections had pointed to 2.1%.

June’s annual personal consumption expenditures inflation rate fell to 3.7%, down from 4.1% in May. Core inflation slipped to 3.3%, compared with 3.4% previously.

Economy and interest rates dashboard

Indicator	Latest	Previous or forecast
Second-quarter real GDP, preliminary annualized estimate	1.5%	2.1% forecast
June headline PCE inflation, year over year	3.7%	4.1% in May
June core PCE inflation, year over year	3.3%	3.4% in May
Federal-funds target range	3.50%-3.75%	No change
10-year Treasury yield	4.667%	Up about 4.5 basis points
30-year Treasury yield	5.212%	Intraday peak of 5.2444%

High rates continued to pressure equity valuations. The Federal Reserve kept interest rates steady on Wednesday, with a 9-3 voting split. Three officials supported raising rates by a quarter point.

The yield on the 30-year Treasury reached 5.2444%, marking its highest level since 2007. The increase puts high-valuation growth stocks at greater risk of another reversal spurred by rising rates.

Shares of Apple NASDAQ:AAPL declined 1.9%, while Amazon.com NASDAQ:AMZN gained 5.0%. Both companies are scheduled to report following Thursday’s close. Updates on spending and cash flow could influence the breadth of the rebound.

Risks: The advance depends heavily on a narrow group of AI-related stocks. A rise in long-term yields, more Fed tightening, or poor cash flow at Apple and Amazon could swiftly unwind gains.

TS2 TECH • EXTENDED COVERAGE

Further analysis

Editorial insight

What levels are the main U.S. indexes currently at?

According to Thursday’s most recent confirmed intraday reading, the Dow rose 0.68% to 51,945.26. The S&P 500 increased 1.29% to 7,410.61. The Nasdaq Composite, with its strong tech focus, advanced 2.43% to 25,037.38 at this update. On Wednesday, those indexes had dropped by 2.19%, 1.52%, and 1.74%, respectively. The current rebound is significant in light of the steep declines seen on Wednesday, though it has yet to fully recover losses from that session. Reuters

What factors are fueling the market recovery today?

Microsoft is currently the leading driver for both the Dow and S&P 500 indexes. Shares were trading around $449.35, up about 15.1% at 11:55 a.m. ET. The company posted $90.0 billion in revenue, an 18% increase from the same period last year. Azure posted a 43% jump in revenue, but its capital expenditure outlook fell short of analyst expectations. Softer monthly PCE figures provided further support, though yearly inflation remained high. The advance is powered by earnings rather than just improved macro sentiment. Microsoft

Is the upturn widespread, or largely driven by the technology sector?

Tech and semiconductor stocks held most of the gains. By around 11:55 a.m. ET, QQQ was up 2.7%, compared to SPY’s rise of 1.1%. The small-cap benchmark IWM was up roughly 0.7% at the same time. Earlier, S&P technology jumped 4.2% and the Philadelphia chip index surged 6.7%. Market breadth was positive, but the Nasdaq logged 72 new lows and 30 new highs. The rally has not extended across all sectors. Reuters

How did today’s GDP and inflation data inform investors?

Real GDP for the second quarter expanded at an annualized 1.5% rate, slowing from 2.1%. The figure was below the 2.1% consensus forecast prior to the release. Private domestic final sales grew 3.9%, pointing to stronger underlying demand from the private sector. Headline PCE in June edged down 0.1% for the month yet was up 3.7% compared to a year ago. Core PCE rose 0.1% for the month and 3.3% from the previous year. The data present a mixed picture: softer economic output, robust private demand, and persistent inflation. Bureau of Economic Analysis

Has the Federal Reserve raised the chances of a rate hike in September?

The Federal Reserve maintained its target rate range at 3.50%–3.75% in a 9–3 decision. Three officials supported a quarter-point hike at once. Futures later assigned around 57%–64% probability to a rate increase in September, with that range indicating fluctuating intraday prices, not a final forecast. Inflation continues to exceed the Fed’s 2% target, despite slower monthly growth in June. As a result, rate risks persist. Federal Reserve

What is causing Treasury yields to continue posing a risk to the stock market recovery?

The yield on the 10-year Treasury climbed to approximately 4.667% according to the latest Reuters data. The 30-year Treasury yield hit 5.2444%, marking its highest point since mid-2007. It subsequently traded close to 5.2124%, standing nearly seven basis points higher. Rising long-term yields lower the present value of profits expected further in the future, affecting pricey growth stocks and other long-duration assets the most. Equities are posting gains today even in the face of these signals from the bond market. Reuters

Which specific stocks are having the biggest influence on the market?

Microsoft was last at $449.35, rising 15.1% and providing significant support for the index. Meta dropped 8.7% to $534.49 after quarterly free cash flow decreased 91%. Amazon advanced 5.1% to $238.32, while Apple declined 1.9% to $331.67. Both Apple and Amazon were set to release results after Thursday’s session ended. Their reports could significantly influence the index’s movement on Friday. Reuters

Is the Nasdaq correction over?

The Nasdaq Composite finished Wednesday 9.78% beneath its June 2 all-time high. After today’s 2.43% rise, that difference narrowed to about 7.6%. The index also climbed above its 100-day average, which is near 24,772. The Nasdaq-100 had already dropped 10% from its early June high. A single rally does not establish a lasting market low. While technical indicators improved today, a full reset has not occurred. Reuters

What is the probable trajectory for the market heading into the close today?

Data currently points to a likely positive finish, though it does not signal a firm shift in the trend. Microsoft and semiconductor stocks are fueling momentum, yet gains beyond those names are less broad-based. A finish above approximately 7,400 would retain much of Thursday’s S&P recovery. Results from Apple and Amazon could quickly alter the market’s course on Friday. Higher long-term yields remain the main downside threat. The confidence level of this outlook is only moderate. Reuters

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Iwona Majkowska is a financial markets journalist at TS2.tech, specializing in stocks, artificial intelligence and technology. A graduate of the Warsaw School of Economics, she previously worked in equity research and financial analysis before focusing on market reporting. Her daily coverage helps investors follow major developments across U.S. and global markets. Follow Iwona Majkowska on Google News.