Nasdaq 100 futures moved 1.5% higher, fueled by Microsoft’s strong premarket gains after the company delivered its fastest cloud growth in four years while keeping spending disciplined.

Investors also received a slight improvement on the inflation front. The Core Personal Consumption Expenditures (PCE) Price Index for June increased just 0.1%, below expectations for a 0.2% rise and slower than May’s 0.3% increase.

Core PCE inflation rose 3.3% compared with a year earlier, matching forecasts and easing from the prior month’s 3.4% level.

Although the PCE reading remains a major inflation indicator watched by the Federal Reserve, the data reflects June and comes as markets approach the August policy window.

Other economic reports pointed to softer growth. The preliminary estimate showed second-quarter GDP expanding at a 1.5% annualized pace, missing expectations of 2.1%. Weekly initial jobless claims also increased slightly to 197,000 from 188,000 the previous week.

Markets showed little reaction to the data. Bitcoin edged higher toward $64,800, while Nasdaq futures advanced 1.7% after Microsoft rallied following its latest earnings report.

Treasury yields rose modestly as investors continued digesting the Fed’s decision to hold rates steady and recent remarks from Fed officials.

Aave Plans Potential Exit From Six Networks

Decentralized lending platform Aave is evaluating whether to withdraw from six blockchain networks—Sonic, Scroll, zkSync, Metis, Soneium, and Aptos—after declining user activity pushed revenue below operational costs.

The governance proposal covers $98.1 million in supplied assets and $15.6 million in outstanding debt across Aave. The six networks being reviewed represent $12.8 million in supplied assets and $4.1 million in debt.

Several deployments have seen major declines in deposits. Sonic’s deposits have dropped 74% over six months to $7.6 million, while Scroll’s deposits have fallen 86% to $2.2 million.

If approved, Aave would suspend new activity, reduce supply and borrowing limits, and increase interest rates to encourage users to repay loans and withdraw funds from networks that each generate less than $5,000 in protocol revenue.

Bank of England Holds Rates at 3.75%

The Bank of England kept its benchmark interest rate unchanged at 3.75%, pointing to a faster-than-expected decline in inflation, which fell to 2.6%.

However, officials warned that inflation could rise again later this year due to higher energy costs linked to geopolitical tensions in the Middle East.

The decision passed by a 6–3 vote, with three policymakers favoring a rate increase to 4%. The split was closer than the previous meeting, when the vote stood at 7–2.

Long-Term Treasury Yields Hit Highest Since 2008

The inflation-adjusted yield on the U.S. 30-year Treasury bond climbed close to 3%, reaching its highest level since 2008, according to Bloomberg data.

The rise means investors can earn nearly 3% above inflation from long-term government bonds, increasing the opportunity cost of holding assets that produce no yield, such as bitcoin and gold, as well as risk assets like technology stocks.

Further increases in real yields could weigh on broader market sentiment.

Dollar Weakens Despite Fed’s Firm Stance

The U.S. Dollar Index (DXY) slipped to 100.67, extending its decline despite the Federal Reserve keeping rates unchanged in what analysts described as a hawkish decision.

Meanwhile, uncertainty over inflation and future monetary policy pushed longer-term yields higher, with the 30-year Treasury yield rising to 5.24%, its highest level since 2007.

A weaker dollar can provide support for bitcoin, while higher yields may create pressure on risk assets.

Bitcoin Moves With AI and Tech Rally

Bitcoin traded near $63,900 on Thursday, slightly lower, as U.S. stock futures gained following Microsoft’s better-than-expected earnings results.

S&P 500 futures increased 0.2%, while Nasdaq 100 futures rose 0.4%. Microsoft shares climbed 8% in premarket trading after its cloud division posted its strongest growth in four years while maintaining spending discipline.

The results reassured investors that AI investments are beginning to generate meaningful returns, unlike Alphabet’s recent spending outlook that raised concerns about rising costs.

Bitcoin has continued to track the broader AI and semiconductor trade, moving more closely with technology stocks than with crypto-specific catalysts.