Market Dynamics: U.S. Stocks Rise Amid Fed Decision and AI Spending Concerns

U.S. stocks rose after Microsoft’s strong forecast calmed fears of high AI spending, while Treasury yields hit a 19-year peak post-Fed's interest rate decision. The yen’s sharp gain hinted at possible intervention. Despite economic growth slowing, consumer spending and AI investments showcased underlying strength in the U.S. economy.

U.S. stocks surged on Thursday, driven by Microsoft's impressive earnings forecast, which alleviated investor fears over burgeoning AI expenditures by large corporations.

Meanwhile, 30-year Treasury yields ascended to a 19-year high as the Federal Reserve's choice to keep interest rates unchanged raised concerns about prolonged inflation. The Japanese yen experienced significant gains, sparking speculation about potential intervention by Japanese authorities.

On the global stage, while the Dow Jones and Nasdaq showed robust gains, South Korea's KOSPI declined. The decision to leave Fed policy steady was met with division among FOMC members, highlighting uncertainty over the central bank's next steps amid rising bond yields.