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stocksJul 31, 2026, 10:49 AM

Stocks Rebound Sharply as Semiconductors Surge 8.5% and Microsoft Adds $450B

U.S. stocks staged a powerful rebound, with semiconductor shares jumping 8.5% and Microsoft gaining $450 billion in market value, challenging the narrative that AI enthusiasm had faded.

MSFT

Stocks exploded higher yesterday, erasing prior losses in a broad-based rally. Semiconductor stocks led the charge, surging 8.5% as investors piled back into the sector. Microsoft alone added roughly $450 billion to its market capitalization, one of the largest single-day gains on record.

Media reports framed the move as a sudden rediscovery of AI’s potential, implying investors had previously abandoned the theme. But the scale of the rebound suggests underlying demand for AI-related hardware and software never truly weakened.

The sharp reversal highlights the danger of interpreting short-term pullbacks as the end of a secular trend. While the day’s gains were extreme, they underscore the market’s conviction that AI remains a durable growth driver.

Source: FXStreet Forex News