US stock indices advanced during Thursday's session as upbeat guidance from Microsoft helped reassure investors that heavy investment in artificial intelligence is continuing to generate strong financial returns.

As of 9:50 a.m. ET:

The Dow Jones Industrial Average rose 290.48 points, or 0.56%, to 51,884.62.

The SP 500 gained 1.12% to 7,398.13.

The Nasdaq Composite jumped 2.22% to 24,985.26.

Microsoft shares surged about 15% after the company forecast stronger-than-expected revenue and cloud computing growth for the current quarter while projecting lower capital expenditures than analysts had anticipated. Microsoft also reaffirmed its ability to generate robust cash flows during its 2027 fiscal year, which recently began.

Apple and Amazon are scheduled to report earnings after the closing bell. Amazon shares rose about 3% in premarket trading, while Apple slipped 1.6%.

US economic data

Fresh economic data showed US economic growth slowed to 1.5% in the second quarter, below expectations of 2.1%, as the trade deficit widened.

Separate data also showed inflation eased in June, reinforcing investor expectations for the future direction of Federal Reserve monetary policy.

Markets continue to assess Fed policy

US equities suffered sharp losses on Wednesday after the Federal Reserve left interest rates unchanged at 3.50%-3.75%, while comments from Fed Chair Kevin Warsh added uncertainty over the future path of monetary policy.

According to data compiled by LSEG, financial markets are currently pricing in a 57% probability that the Federal Reserve will raise interest rates by 25 basis points at its September meeting.