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The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, setting sights on fresh record stock highs after strong Meta (META) and Microsoft (MSFT) earnings boosted faith in a payoff from Big Tech’s massive AI investments.
The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%.
Meta shares shot up 12% in early trading, as investors welcomed its earnings beat and stronger-than-expected guidance even as it ramps up its AI spending spree. Microsoft stock jumped over 8% after its impressive results, on track to make the company the second in the world to reach a $4 trillion market valuation.
Markets are now looking to after-hours results from their “Magnificent Seven” peers Apple (AAPL) and Amazon (AMZN) for reasons to keep the rally going.
Meanwhile, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) released on Thursday morning showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
The release comes after the Fed held interest rates steady following its two-day policy meeting on Wednesday, with two Fed governors dissenting.
Following the decision, Fed Chair Jerome Powell stressed “no decisions” had been made about a September rate cut, undercutting President Trump’s claim he had heard a cut was coming at policymakers’ next meeting. Bets on a September cut fell below 40% on Thursday, according to the CME Group, down from about 60% before the meeting.
Also, a flurry of trade deals eased trade-war fears on the eve of President Trump’s deadline on Friday. A pact with South Korea announced late Wednesday sets a 15% tariff rate on its imports. US exports will face zero duties in return, and Seoul has agreed to make $350 billion in US investment and pledged to buy US energy products, Trump wrote in a social media post.
LIVE 16 updates
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Microsoft tops $4 trillion
Microsoft’s (MSFT) market capitalization officially hit the $4 trillion mark Thursday, making it the second company behind Nvidia (NVDA) to achieve the feat.
Shares of Microsoft climbed as much as 8% Thursday morning before paring gains, up roughly 5% shortly after the market opened.
Microsoft, Apple (AAPL) and Nvidia have traded places as the world’s most valuable companies. Nvidia still retains the top spot after a stunning comeback from a rocky first half of the year, with its market cap sitting around $4.4 trillion Thursday. Apple’s was just over $3 trillion in morning trading.
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S&P 500, Nasdaq surge at the open
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, on track for fresh record highs after strong Meta (META) and Microsoft (MSFT) earnings fueled a spike in tech stocks.
The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%.
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Microsoft set to join $4T market cap club, Meta stock surges in post-earnings rally
Microsoft (MSFT) and Meta (META) stocks ripped higher in premarket trading as investors continued to bid up shares following the tech giants’ earnings reports.
Combined, the two stocks have added about half a trillion dollars in market value since Wednesday’s close.
If gains hold, Microsoft is set to join Nvidia (NVDA) in the $4 trillion market capitalization club when the market opens. Its market cap as of Wednesday stood at $3.81 trillion, and the stock has gained nearly 9% in premarket trading.
Meta stock surged 11% ahead of the opening bell. Both Meta and Microsoft reported strong revenue growth that outweighed investors’ concerns about spending on artificial intelligence.
“The stock moves make sense — the results are that good,” D.A. Davidson head of technology research Gil Luria told Yahoo Finance following Meta’s and Microsoft’s earnings. “Meta is gaining significant share in the digital advertising market, … and therefore investors have patience for the capex guidance they’re providing.”
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Fed’s preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty
The latest reading of the Federal Reserve’s preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
Yahoo Finance’s Josh Schafer reports:
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Roblox stock soars as daily active users surpass 100 million
Roblox’s (RBLX) stock rocketed 20% higher in premarket trading after reporting record daily users and raising its third quarter forecast for bookings.
Daily active users rose 41% in the second quarter to cross 111 million, the company reported on Thursday.
Roblox also raised its forecast for annual bookings in the third quarter to $1.59 billion to $1.64 billion. Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion.
Reuters reports that the company has been investing in search and discovery features that allow greater visibility for viral games like “Grow a Garden.” Roblox also aims to diversify its revenue beyond gaming by turning the platform into a hub for socializing, commerce, and advertising.
The platform saw a boost in engagement during the quarter, with engaged hours up 58% to 27.4 billion.
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What’s in the US-EU trade deal depends on who is doing the talking
President Trump and European Commission President Ursula von der Leyen shook hands Sunday over a trade agreement. The White House did a victory lap, but days later, there are still plenty of disagreements about exactly what is in the pact.
Yahoo Finance’s Ben Werschkul reports:
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A quirk in the Fed’s calendar puts extra pressure on the Sept. meeting
Yahoo Finance’s Hamza Shaban takes a look at the Federal Reserve’s next move in today’s Morning Brief:
Read more here on how a long wait could result in a different outlook.
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Good morning. Here’s what’s happening today.
Economic data: Challenger jobs cuts (July); Personal income & spending (June); Core PCE price index; Employment cost index (second quarter); Initial jobless claims (week ending July 26)
Earnings: Apple (AAPL), Amazon (AMZN), Bristol Myers Squibb (BMY), Cigna (CI), Coinbase (COIN), CVS Health (CVS), Mastercard (MA), Norwegian Cruise Line (NCLH), Reddit (RDDT), Roblox (RBLX), Roku (ROKU), Strategy (MSTR)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump knocks Canada as countries rush to strike trade deals
Trump tariffs face another legal test on eve of deadline
Apple faces 2 major threats ahead of earnings
What’s in the US-EU trade deal? It depends on who’s talking.
Fed calendar quirk raises the stakes for its Sept. meeting
Meta stock surges after earnings beat, guidance surprise
Microsoft on track for $4 trillion market cap after earnings beat
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Trending tickers: ARM, CVS and Confluent
Here are some top stocks trending on Yahoo Finance in premarket trading:
Arm (ARM) stock fell 6% on Thursday before the bell following the announcement of the chip tech provider’s plan to invest in its own chip development, which would bite into future profits, disappointed investors.
CVS (CVS) stock jumped 7% in premarket on Thursday after the company beat Wall Street estimates for second-quarter profit.
Confluent Inc (CFLT) stock rose over 20% premarket following the company’s positive earnings report. The data streaming platform reported a 21% growth in subscription revenue and a 28% growth in Confluent Cloud revenue for Q2 2025.
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Carvana posts higher quarterly profit on record car sales
Shares in Carvana (CVNA) surged over 15% in premarket trading after the online used-car seller defied expectations with strong second quarter results and outlook.
Bloomberg reports:
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EBay stock rises as resilient consumers fuel strong sales forecast
EBay (EBAY) stock jumped on Thursday before the bell after the e-commerce company forecasted sales that topped analysts’ estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals.
Bloomberg News reports:
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AB InBev shares slide on concern over sales volumes
Beer giant Anheuser-Busch InBev (BUD) stock slumped more than 9% before the bell on Thursday after reporting that its second quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor worries over industry growth and hitting its shares.
Reuters reports:
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Qualcomm on the move lower
Qualcomm’s (QCOM) not playing in the big-cap tech stock euphoria this morning led by Microsoft (MSFT) and Meta (META) post earnings. Its shares are down 6% premarket.
The company’s earnings late Wednesday were fine. But the Street is calling out a few things that are giving the bears the win, for now.
This note from HSBC’s Ryan Mellor this morning captures it all nicely:
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This is remarkable on Meta
Meta’s (META) stock is rocking higher in premarket, to the tune of 12% after a monster quarter.
Got to love the market ignoring the capex stuff in its earnings release below, and focusing in on Meta’s revenue trends (strong).
“We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion, narrowed from our prior outlook of $64-72 billion and up approximately $30 billion year-over-year at the mid-point. While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations,” Meta said.
Bottom line: bull market … carry on!
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Microsoft earnings call: A quick take
A bit of a sleepy earnings call from Microsoft (MSFT) after the close, filled with the typical Satya Nadella tech jargon.
Bottom line is this: Azure sales crushed, and there was zero signs of peaking AI demand. That should be good enough for the bulls.
“We expect stock to trade up given continued large Azure growth beats and a positive AI trajectory even with continued capacity constraints. We think this also bodes well for other AI infrastructure names in our coverage (Oracle (ORCL), Coreweave (CRWV),” Citi analyst Tyler Radke said.
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Samsung Electronics chip business fell drastically in Q2
Samsung Electronics (005930.KS) saw a mammoth drop in profit from the chip-making arm of the electronics giant.
Bloomberg reports:
