Nasdaq Surges 3.4% as Microsoft Posts Record $450 Billion Daily Gain

A massive resurgence in semiconductor stocks propelled the Nasdaq 100 to a 3.4% gain on Thursday, as investors aggressively bought the dip following recent volatility. The tech-heavy index was led by a historic performance from Microsoft Corp., which surged 16% to add approximately $450 billion in market value—the largest single-day gain for any company in history. The rally signifies a renewed confidence in the artificial intelligence trade that has underpinned the current bull market.

While Microsoft reached new heights, the broader Big Tech landscape showed mixed results. Amazon.com Inc. shares climbed in late-hours trading following a strong quarterly report, while Apple Inc. saw a slight retreat ahead of its own earnings test. Investors are closely watching whether Apple can maintain its status as an 'AI safety play' amid increasing scrutiny of tech valuations.

The rebound comes immediately after a sharp sell-off triggered by the Federal Reserve's latest policy meeting. On Wednesday, the S&P 500 had fallen 1.5% and the Nasdaq 100 briefly entered a technical correction after Chair Kevin Warsh left interest rates steady. The decision, combined with a surge in 30-year bond yields to nearly two-decade highs, initially spooked markets before Thursday’s tech-led recovery.

Market analysts at Citi noted that the momentum is spreading beyond just tech, pointing to a significant rally in Ford Motor Co. as a sign of broader market strength. However, the 'bear steepener' in the bond market remains a point of concern for some strategists, who warn that the divergence between rising long-term yields and steady short-term rates could still pose risks to equity valuations in the coming months.