U.S. stocks rallied as Microsoft's robust earnings report restored momentum to the artificial-intelligence boom.

Anxiety about tech companies' massive AI infrastructure investments subsided but was not erased. After the bell Wednesday, Microsoft reported blockbuster revenue growth at its cloud-computing unit and gains on an Anthropic stake. That revealed the potential payoff for AI investments. At the same time, Facebook owner Meta Platforms said its data-center spending was pinching free cash flow.

The Dow Jones Industrial Average rose 613.92 points, or 1.19%, to 52208.06, rebounding from a plunge Wednesday. The broad S&P 500 gained 121.48 points, or 1.66%, to 7437.63 . The tech-heavy Nasdaq Composite jumped 679.24 points, or 2.78%, to 25122.18.

The yield on the 30-year bond rose 0.065 percentage point to 5.206%, the highest close since July 12, 2007. The yield on the policy-sensitive two-year Treasury fell 0.007 percentage point to 4.227%. The divergence reflected market expectations that Federal Reserve Chairman Kevin Warsh would allow inflation to rise further before intervening.