Microsoft shares have staged a dramatic recovery, erasing all year-to-date losses following a historic surge in valuation.

The company added a record $490 billion to its market capitalization in a single trading session, marking a momentum shift not seen in over two decades.

This massive repricing has helped stabilize sentiment across the broader US equity market, which had been weighed down by early-week losses.

The rally was catalyzed by Microsoft’s latest earnings report, which exceeded analyst expectations.

Investors responded positively to the results, viewing them as a sign of resilience in the tech sector despite broader macroeconomic headwinds.

The strength in Microsoft’s performance provided a crucial anchor for risk assets, helping to reverse the downward trend that had characterized the start of the week.