Ankara: The New York Stock Exchange closed higher on Thursday as investors focused on corporate earnings reports and data on the US economy. The Dow Jones industrial average rose 1.19%, or 613.92 points, to close at 52,208.06. The S and P 500 increased 1.66%, or 121.48 points, to finish at 7,437.63, while the Nasdaq Composite jumped 2.78%, or 679.24 points, to end the day at 25,122.18. The Volatility Index (VIX), often referred to as the market's 'fear index,' declined by 17.28% to 17.09.
According to Anadolu Agency, the market took a positive turn following a sharp decline on Wednesday after the Fed's interest rate decision. Microsoft reported strong financial results, easing concerns over artificial intelligence spending, as the company's capital expenditure outlook fell short of market expectations. Microsoft's shares saw a significant gain of 15.5%.
Semiconductor stocks also experienced a rebound, with Micron Technology shares rising 18.4% and Advanced Micro Devices (AMD) shares climbing 13%. Among the tech companies reporting earnings, Meta announced a 28% year-over-year revenue increase to $60.8 billion in the second quarter. However, its net income fell 14% to $15.85 billion during the same period, leading to a 7.95% drop in Meta shares as the company revealed a decline in free cash flow for the second quarter.
On the macroeconomic front, the US economy grew by 1.5% in the second quarter, which was below expectations. The personal consumption expenditures price index, closely monitored by the Fed as an inflation indicator, fell 0.1% on a monthly basis in June but rose 3.7% on an annual basis. The core personal consumption expenditures price index, excluding food and energy, also rose 0.1% monthly and 3.3% annually during the same period. Initial claims for unemployment benefits rose to 197,000 in the week ending July 25, yet remained below market expectations.
In European markets, stocks saw increases, except in the UK. The pan-European Stoxx Europe 600 index gained 0.77% to close at 649.95 points. The UK's FTSE 100 lost 0.1% to 10,897.27, while Germany's DAX 40 rose 0.6% to 25,612.03 points. France's CAC 40 increased by 0.92% to 8,485.64, Italy's FTSE MIB 30 surged 1.29% to 52,104.38 points, and Spain's IBEX 35 climbed 1.78% to 19,757.70 points.