U.S. stocks rallied, with the Nasdaq Composite jumping 2.8%, as Microsoft's strong earnings report revitalized interest in the artificial-intelligence boom. Investors' concerns about the substantial investments tech companies are making in AI infrastructure have eased, though not entirely disappeared.

Microsoft announced impressive revenue growth in its cloud-computing division and profits from its investment in Anthropic, showcasing the potential returns from AI initiatives. This positive news contrasted with Meta Platforms, Facebook's parent company, reporting that its data-center expenditures were impacting its free cash flow.

The Dow Jones Industrial Average advanced 613.92 points, or 1.19%, to 52208.06. The S&P 500 saw a gain of 1.66%, closing at 7437.63, while the Nasdaq Composite surged 2.78% to 25122.18. The yield on the 30-year bond increased to 5.206%, its highest close since July 12, 2007, while the two-year Treasury yield slightly decreased.