Meta, Microsoft Add $500B as US-South Korea Trade Eases

Tech stocks exploded higher Thursday as Meta and Microsoft posted earnings that far surpassed analyst predictions. The two giants alone added more than $500 billion to their combined market value, sending the Nasdaq and S&P 500 sharply higher while a fresh US-South Korea trade pact soothed weeks of tariff anxiety.

Microsoft surged over 8%, becoming only the second company after Nvidia to break the $4 trillion market capitalization barrier. The boost followed fiscal Q4 earnings of $3.65 per share, well beyond consensus, and a 39% jump in Azure cloud revenue that highlighted continued momentum in AI and enterprise tech.

Meta wasn’t far behind. Shares leapt 11% as quarterly revenue soared to $47.52 billion, crushing Wall Street’s estimates and delivering an earnings per share figure of $7.14. CEO Mark Zuckerberg credited strong advertising and rising user engagement, also pledging “personal superintelligence for everyone” as Meta ramps up its AI investments.

Market Surges on Tech Earnings and Trade Breakthrough

The stellar results from both firms added over $500 billion to their market capitalizations in early session trading. Nasdaq 100 futures gained 1.3%, and S&P 500 futures climbed 0.9%, with analysts calling the performance clear validation of the “AI revolution’s” real revenue impact.

The stocks’ energy came as Apple and Amazon prepared their own closely watched reports, with Big Tech now making up nearly a third of the S&P 500.

Did you know?
The combined rise in Meta and Microsoft’s stock capitalizations, over $500B in a single session, ranks among the largest value surges by two companies in Wall Street history.

US-South Korea Trade Truce Calms Markets

Investor anxiety over tariffs eased after President Trump announced a “full and complete” trade deal with South Korea, replacing the threatened 25% tariffs with a 15% rate on imports and securing $350B of South Korean investment in US projects.

The pact also includes Seoul’s agreement to buy $100B in American energy, delivering an early win for Korea’s new president and keeping global markets steady ahead of the critical August 1 tariff deadline.

The trade accord capped a news cycle dominated by tech prowess and offered long-awaited relief to import-heavy sectors. As one analyst noted, trade clarity “unlocked” further gains for technology and manufacturing shares alike.

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AI, Fed Policy, and a Bullish Wall Street

Optimism stretched across markets, driven by explosive demand for AI-powered cloud services and the sector’s outperformance in earnings. Industry voices described the AI wave as still “in its infancy,” suggesting more upside to come as firms like Meta and Microsoft keep expanding their AI and cloud dominance.

Federal Reserve policy helped set the rally’s tone. The Fed held rates unchanged on Wednesday, providing additional market stability, though future cuts remain uncertain.

All eyes now turn to the next round of corporate earnings, but Thursday’s tech-led rally showed that investors aren’t done betting on the power of innovation to drive Wall Street’s future.