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U.S. stocks are bouncing back after Microsoft leaped on its latest profit report and computer-chip companies clawed back some of their big recent losses. The S&P 500 rose 0.9% Thursday and recovered more than half its drop from the prior day, which was its worst in seven weeks. The Dow Jones Industrial Average added 250 points, and the Nasdaq composite jumped 1.8%. Microsoft delivered bigger profit than expected and suggested that its big investments in AI may pay off. That offset a drop for Meta Platforms, which raised its forecast for AI investments. Oil prices eased.

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The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve’s favored measure of inflation grew more slowly last month, but remained above the central bank’s 2% target. The Commerce Department reported Thursday that growth in U.S. gross domestic product — the nation’s output of goods and services — decelerated from 2.1% in the first three months of 2026 and came in below economists’ expectations. But consumer spending — which accounts for about 70% of U.S. economic activity — increased at a 3.2% annual clip

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Back-and-and-forth missile strikes between the U.S. and Iran are dimming hopes for a deal to end the war as more countries are drawn in. Jordan, Kuwait, Egypt, Saudi Arabia and Iraq have reported strikes. President Donald Trump's move to install his lawyer Todd Blanche as attorney general is stalled as Republicans object to the Trump tax amnesty deal Blanche engineered. And Trump's approval rating has dropped, with most Americans saying the Iran war isn't worth fighting, according to a new AP-NORC poll. More than 70% say it's highly important to reach a ceasefire and prevent oil and gas prices from rising.

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France has allowed 84,000 evacuees to return home after a massive wildfire forced them out. This marks progress in the fight against the flames, which have burned an area four times the size of Paris. However, fires continue to flare across Europe. On Thursday, firefighters battled blazes in the UK, Spain, Germany, and Turkey. In southwest France, 224,000 people had to evacuate. The prefect in the region around Bordeaux, Sophie Brocas, says nearly two-thirds of evacuees can return. Authorities advise caution as conditions remain volatile. The heatwave has created tinderbox conditions across southern Europe, leading to widespread emergencies.

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It’s been a choppy year for restaurants that lean into lettuce. Lettuce prices rose sharply in the first half of 2026 due to hot weather in Arizona, where about one-third of America’s lettuce is grown. Now, some restaurants are dealing with the fallout from a cyclospora outbreak linked to shredded lettuce that has sickened thousands of Americans. Taco Bell will likely see the biggest sales impact from the outbreak. But market research companies say other salad-focused chains are seeing reduced foot traffic as well. Federal health officials first tied the outbreak to shredded iceberg lettuce served at Taco Bell restaurants in multiple states, although health officials say there might be additional causes.

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A man who gave his son the gun used in a deadly school shooting in Georgia is set to be sentenced Thursday. Colin Gray was convicted of second-degree murder and involuntary manslaughter after his teenage son, Colt Gray, used the weapon to kill two students and two teachers at Apalachee High School on Sept. 4, 2024. Colt Gray was sentenced Tuesday to life in prison without the possibility of parole. Prosecutors say Colin Gray gave his son the rifle as a Christmas gift. The elder Gray is among a handful of parents nationwide charged after their children were accused in shootings.

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Russian missile and drone attacks across Ukraine killed at least nine civilians and injured over 50 others. NATO scrambled its warplanes after a Russian missile entered Polish airspace, landing in a rural area without causing injuries. Poland's prime minister called it “a very serious incident.” It could deepen tensions between the military alliance and Moscow, as wary European countries fear the expansion of Russia's 4-year-old full-scale war. The attacks targeted multiple Ukrainian cities, including Kyiv, where tens of thousands of people sheltered in subway stations. Ukrainian President Volodymyr Zelenskyy has called for more air defense systems from its Western allies.

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Julian Alonso walks on his property destroyed by a wildfire in El Encinar del Alberche, Madrid province, Spain, Thursday, July 30, 2026. (AP Photo/Manu Fernandez)