U.S. stock opened higher, with the broad S&P 500 and tech-heavy Nasdaq scoring record highs, after Meta and Microsoft reported better-than-expected quarterly results and amid a flurry of trade deals.
Both companies are part of the so-called Magnificent Seven megacap, influential tech giants. After reporting strong results, Microsoft shares rose to push the software giant’s valuation past the $4 trillion mark. The only other company that has achieved that is chip maker Nvidia, which did earlier this month to become the first company ever to top $4 trillion.
At 9:42 a.m. ET, the blue-chip Dow added 0.07, or 29.39 points, to 44,490.67; the broad S&P 500 rose 0.59%, or 37.83 points, to 6,400.73; and the tech-heavy Nasdaq gained 1.11%, or 233.88 points, to 21,363.55. The benchmark 10-year Treasury yield rose to 4.368%.
The moves come a day after the Federal Reserve held interest rates steady, continuing its wait-and-see approach on how President Donald Trump‘s tariff policies affect inflation and the economy. It also emphasized that the economy has slowed but remains resilient with a solid labor market. Two Fed governors dissented, which was the first time since 1993 that two members of the Fed’s Board of Governors voted against the chair, according to Capital Economics.
This morning, the Fed’s preferred gauge of inflation rose 2.6% in the 12 months through June, just faster than the 2.5% mean estimate of economists polled by the Wall Street Journal. The so-called core rate that excludes the volatile food and energy sectors rose 2.8%, also just ahead of estimates.
Many economists believe Trump’s tariffs will continue to boost inflation in the second half of the year. However, some expect the blip to be temporary.
Separately, the number of Americans filing new applications for unemployment benefits was at 218,000 for the week of July 26, compared with estimates of 224,000, according to economists polled by Reuters. Attention now turns to the monthly non-farm payrolls report at the end of the week as a gauge of how the labor market is holding up.
More earnings also are on tap, with another two Mag Seven companies, Apple and Amazon, due to report after the market closes.
Some countries are scrambling to strike a trade deal by the Aug 1 deadline. Here are some of the latest updates on what trade deals have been reached and progress on others:
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.