Stock market today: Dow extends gains as banks shine, Microsoft hits record high

investing.com:

Investing.com — The S&P 500 delivered swashbuckling gains Tuesday as investors cheered better-than-expected quarterly results from a slew of major corporations including Wall Street banks and a record high in Microsoft amid AI-optimism.

The Dow Jones Industrial Average rose 1.1%, or 366 points, the Nasdaq was up 0.8%, and the S&P 500 rose 0.7% to end the day at 52-week highs.

Bank of America Corp (NYSE:BAC) led the move higher in banking stocks, rising more than 4% after reporting second-quarter earnings that topped analyst estimates as higher interest rates boosted loan income.

Morgan Stanley (NYSE:MS), meanwhile, rallied 6% after its second-quarter results beat estimates on both the top and bottom lines as performance in its wealth management business offset weakness in its trading business amid a drop in equity and fixed-income revenue.

Charles Schwab Corp (NYSE:SCHW) topped the list of gainers, up more than 12% following its better-than-expected quarterly results.

Microsoft (NASDAQ:MSFT) rose 4% as investors piled into the stock on AI-optimism after the tech giant said it would charge businesses $30 per user to access the tech giant’s suite of artificial intelligence tool.

The initial pricing details are “very bullish for the total addressable cloud AI market opportunity for Microsoft that could increase cloud revenue annually by 20% by 2025 based on our estimate,” Wedbush said in a note.

Tesla Inc (NASDAQ:TSLA) and Netflix Inc (NASDAQ:NFLX) were in rally mode ahead of the quarterly results due Wednesday after the market closes.

For Tesla's quarterly results, the focus will likely be on margins following theelectric vehicle maker’s recent price cuts, while investor focus on Netflix’s quarterly results will likely