Tech Giants Lift Nasdaq, S&P 500 To New Highs Amid Strong Earnings

U.S. stocks advanced notably, driven by strong earnings reports from major technology companies Meta Platforms and Microsoft, which helped lift the Nasdaq and S&P 500 to new intraday record highs. Meta surged nearly 12% after exceeding Wall Street expectations despite heavy investments in artificial intelligence, while Microsoft rose over 4%, boasting robust revenue growth and positive updates on its Azure cloud platform, a key AI initiative. These tech giants, part of the influential 'Mag-7' group, continue to be the primary market drivers even as other sectors like healthcare lag behind. Despite the Federal Reserve holding interest rates steady and signaling no immediate rate cuts due to persistent inflation and a solid labor market, investor enthusiasm for AI advancements in tech stocks remains high. Trade negotiations and tariffs, including U.S. tariffs on EU wine and spirits and South Korea’s export taxes, continue to add complexity to the economic outlook. Overall, the market reflects optimism about technological innovation and earnings strength, tempered by cautious monetary policy and ongoing trade uncertainties.