Stocks gain on tech support, US 30-year yield near 2007 high

By Niket Nishant and Ankur Banerjee

July 30 (Reuters) - Global stocks rebounded connected Thursday aft U.S. ostentation information for June matched expectations and Microsoft net eased immoderate AI spending worries, portion semipermanent U.S. ‌borrowing costs roseate to their highest since 2007 connected doubts astir the Federal Reserve's resoluteness successful ‌taming inflation.

A Commerce Department study showed the Personal Consumption Expenditures Price scale fell 0.1% successful June, compared with a 0.1% alteration expected by ​economists polled by Reuters. Annually, it stood astatine 3.7%, successful enactment with estimates of 3.7%.

Futures connected the tech-heavy Nasdaq 100 roseate 1.51%, portion S&P 500 and Dow futures gained 0.60% and 0.35%, respectively.

Markets are astatine a delicate juncture, with steep declines successful the shares of immoderate of the biggest winners of the AI roar spooking investors. South Korea's KOSPI ‌fell 1.23% to extremity its 3rd ⁠consecutive time successful the red.

Earnings from Microsoft and Meta reinforced the presumption that investors were looking for signs that the costly AI buildout is starting to wage off.

"We don't ⁠think the AI communicative is implicit by immoderate means, but intelligibly there's scope for bumps on the way," said Sanjiv Tumkur, caput of equity probe astatine Rathbones.

Microsoft shares roseate 9.02% successful premarket trading aft the tech large said it expects to ​keep ​generating currency done fiscal 2027. But Meta tumbled 10.2% pursuing ​earnings that reflected the strain of its costly ‌AI bets.

Microsoft had deed "the pitchy watercourse portion Meta is inactive gathering the runway", Jefferies analysts wrote.

Bonds remained nether pressure. The 30-year Treasury enslaved output was trading astir 19-year highs and was past astatine 5.2124%, jumping supra 5.2% the time earlier aft the Federal Reserve kept involvement rates connected clasp adjacent arsenic Chair Kevin Warsh offered mixed messages connected monetary argumentation and ostentation outlook.

Traders struggled to gauge the Fed's adjacent determination - a situation compounded by Warsh's ‌retreat from offering guardant guidance.

"The aversion from Warsh to supply guardant ​guidance is hurting a small spot of credibility here," said Oscar ​Munoz, caput of US economics astatine TD Securities.

"He's ​pointing to the marketplace benignant of doing the occupation for the Fed, but astatine ‌some constituent determination has to beryllium immoderate follow-through."

Europe's ​STOXX 600 benchmark roseate 0.65%, ​while Britan's FTSE 100 was hovering adjacent to a grounds high. The Bank of England kept involvement rates unchanged connected Thursday.

The MSCI All Country World Price scale inched 0.25% higher aft 2 sessions of losses.

Traders ​were besides assessing abstracted information that ‌showed U.S. economical maturation slowed successful the 2nd 4th amid a widening commercialized deficit, but underlying ​strength was robust.

(Reporting by Niket Nishant successful Bengaluru and Ankur Banerjee and Rae Wee successful Singapore; ​Editing by Amanda Cooper, Mrigank Dhaniwala and Arun Koyyur)