Wall Street rallies on Microsoft earnings beat; Nasdaq surges 2.8%

US stocks closed broadly higher Thursday, lifted by Microsoft's better-than-expected earnings and strength in semiconductor shares. Renewed optimism over AI investment drove a broad-based rally in technology stocks.

The Dow Jones Industrial Average rose 613.92 points, or 1.19 percent, to close at 52,208.06 on the New York Stock Exchange on Thursday.

The S&P 500 gained 121.48 points, or 1.66 percent, to finish at 7,437.63, while the tech-heavy Nasdaq Composite surged 679.24 points, or 2.78 percent, to 25,122.18.

Microsoft's strong quarterly results eased market concerns about the pace of AI investment, boosting investor sentiment. Semiconductor stocks also advanced broadly, with major technology shares driving the indexes higher.

The Nasdaq led the three major indexes with a gain of nearly 3 percent.