Microsoft shares rose 2.5% after the tech giant posted quarterly earnings and revenue that topped analyst expectations. The company’s results were driven by a 39% year-over-year surge in cloud revenue.
The Dow climbed 75 points as the S&P 500 added 0.3% and the Nasdaq advanced 0.4%.
More than 15% of S&P 500 companies have reported earnings thus far. Of those companies, 79% have posted a better-than-expected profit, according to FactSet data.
Stocks had small gains in the previous session after New York Federal Reserve said the central bank needed to “act quickly” when the economy was slowing and rates were low, adding that it is “better to take preventative measures than wait for disaster to unfold.”
Those comments led traders to price in a greater possibility that the Fed would cut interest rates by 50 basis points at the end of the month.