Microsoft's $100 Billion Azure Milestone Ignites a Memory-Chip Frenzy, Erasing Wednesday's Fed-Fueled Rout

A Furious Rebound Erases the Fed's Rate-Shock Selloff

Microsoft's Record Quarter and a Memory-Chip Squeeze Erase the Fed's Rate Shock

• Microsoft surged roughly ▲ 16% to close at $454.44 — its best day since 2008 — after fiscal fourth-quarter revenue rose 18% to $90 billion and GAAP earnings per share jumped 32% to $4.81, both above Wall Street estimates. Azure's annual revenue topped $100 billion for the first time, with Azure and cloud services revenue up 43% year-over-year.
• The rally reversed most of Wednesday's rout, when the Dow tumbled 1,153 points ▼ 2.19% — its worst session since 2025 — after the Federal Reserve held its benchmark rate at 3.50%–3.75% on a 9-3 vote, with three policymakers dissenting in favor of a hike.
• Memory-chip makers exploded higher on supply-constraint optimism after Samsung warned of possible shortages: SanDisk jumped about ▲ 22%, Western Digital and Lam Research each gained roughly ▲ 18%, and Micron rose about ▲ 15%.
• The S&P 500 closed at 7,410.87 ▲ 1.29% and the Nasdaq Composite jumped to 25,015.87 ▲ 2.34%, effectively erasing the week's Fed-driven losses in a single session.

Chips and Memory Stocks Lead a Furious Tech Rebound

• Information technology was the day's standout sector, climbing more than 4% as chipmakers and memory names rallied broadly on renewed optimism that the industry can avoid the severe oversupply investors had feared.
• Lam Research (LRCX) jumped roughly ▲ 18% after beating earnings estimates and issuing forward guidance well above expectations, lifting sentiment across semiconductor-equipment names.
• Healthcare and real estate were the session's clearest laggards, weighed down by Teladoc Health's roughly ▼ 26.8% plunge after a steep guidance cut tied to a revenue miss.
• Energy stayed in focus as Middle East tensions kept crude prices elevated, with Exxon Mobil and Chevron both set to report earnings before Friday's open.

Memory Chips and Microsoft Ruled Thursday's Session

• SanDisk (SNDK) led gainers, up about ▲ 22%, as the memory sector's supply outlook brightened on Samsung's shortage warning.
• Western Digital (WDC) and Lam Research (LRCX) each climbed roughly ▲ 18%, with Lam Research also benefiting from its earnings beat and raised guidance.
• Microsoft (MSFT) jumped approximately ▲ 16% to $454.44, adding nearly $64 a share in a single session after its blowout fiscal Q4 report and $100 billion Azure milestone.
• Micron (MU) rose about ▲ 15% alongside the broader memory rally, which also lifted SK Hynix and Seagate double digits.

A Hawkish Fed Hold Still Looms Over the Rally

• The S&P 500 closed at 7,410.87 ▲ 1.29%, the Nasdaq Composite at 25,015.87 ▲ 2.34%, the Dow Jones Industrial Average at 52,058.95 ▲ 0.90%, and the Russell 2000 at 2,930.07 ▲ 0.82% — a broad-based rebound from Wednesday's selloff.
• The Federal Reserve held its benchmark rate at 3.50%–3.75% on Wednesday in a 9-3 vote, with three officials dissenting in favor of a rate increase — a split that signals ongoing disagreement over how to handle inflation still running well above the Fed's 2% target.
• Long-dated Treasury yields stayed elevated after the decision, with the 30-year yield touching a multidecade high near 5.24% on concerns the Fed may be falling behind on inflation.
• Second-quarter GDP grew just 1.5%, below the 1.8% pace economists expected, while the latest PCE price index — the Fed's preferred inflation gauge — held at 3.7% year-over-year.

Apple and Amazon Earnings Set the Tone for Friday

• Apple fell more than 4% in after-hours trading despite beating on revenue and profit ($109.4 billion revenue, $29.8 billion profit, $2.02 EPS), as investors focused on soft Services growth and weakness in China.
• Amazon jumped roughly 7–9% after hours after AWS revenue rose 37% — its fastest growth in 18 quarters — to $42.2 billion, with net sales up 20% to $200.6 billion, setting up a closely watched Friday session.
• Exxon Mobil and Chevron report earnings before Friday's open, a key test for the energy sector as Middle East tensions keep crude prices elevated.
• Friday closes out July's trading, and investors will watch whether Thursday's chip-and-memory rally has staying power once the excitement from earnings season fades.