WASHINGTON (dpa-AFX) - Stocks moved sharply higher during trading on Thursday, largely offsetting the sell-off seen late in the previous session. The major averages showed a strong move to the upside early in the session and remained firmly positive throughout the day.
The tech-heavy Nasdaq helped lead the way higher, spiking 679.24 points or 2.8 percent to 25,122.18. The S&P 500 also shot up 121.48 points or 1.7 percent to 7,437.63 and the Dow jumped 613.92 points or 1.2 percent to 52,508.06.
The recovery rally on Wall Street largely reflected strength among technology stocks, as reflected by the surge by the Nasdaq.
Bargain hunting contributed to the strength among tech stocks after the Nasdaq plunged to a three-month closing low on Wednesday. The Dow and the S&P 500 also ended the session at their lowest closing levels in well over a month.
Microsoft (MSFT) helped lead the tech rally, with the software giant soaring by 15.5 percent after reporting better than expected quarterly earnings amid strength in its Azure business.
With Microsoft leading the way higher, substantial strength was visible among software stocks, as reflected by the 8.4 percent spike by the Dow Jones U.S. Software.
Semiconductor stocks also saw a significant rebound, resulting in a 8.2 percent surge by the Philadelphia Semiconductor Index. The index bounced off a three-month closing low.
Shares of Lam Research (LRCX) skyrocketed by 18 percent after the semiconductor equipment maker reported fiscal fourth quarter results that exceeded estimates.
Outside of the tech sector, airline stocks saw considerable strength amid a pullback by the price of crude oil, with the NYSE Arca Airline Index jumping by 5.2 percent.
Gold, brokerage and oil service stocks also turned strong performances, while pharmaceutical, housing and healthcare stocks showed significant moves to the downside.
Shares of Meta Platforms (META) also bucked the uptrend, with the Facebook parent plunging by 8 percent after providing disappointing revenue growth guidance.
On the U.S. economic front, the Commerce Department released a report showing consumer prices edged down in line with estimates in the month of June. The annual rate of growth also slowed in line with expectations.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Thursday. Japan's Nikkei 225 Index climbed by 0.7 percent, while China's Shanghai Composite Index slid by 0.6 percent.
Meanwhile, European stocks moved mostly higher on the day. The French CAC 40 Index advanced by 0.9 percent and the German DAX Index rose by 0.6 percent, although the U.K.'s FTSE 100 Index bucked the uptrend and edged down by 0.1 percent.
In the bond market, treasuries showed a notable move to the downside, extending yesterday's pullback. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 4.1 basis points to 4.663 percent.
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