Wall St jumps on Microsoft's blockbuster earnings
Microsoft became the second publicly-traded company after Nvidia to surpass $US4 trillion ($A6.2 trillion) in market valuation, following a blockbuster earnings report.
Meta Platforms also climbed 12.1 per cent to an all-time high in early trading, after the social media giant forecast third-quarter revenue well above estimates, thanks to AI boosting its core advertising business.
Nvidia gained more than one per cent.
The S&P technology index and the communication services index both hit record highs, up 1.2 per cent and over three per cent, respectively.
In early trading on Thursday, the Dow Jones Industrial Average rose 88.73 points, or 0.20 per cent, to 44,550.01, the S&P 500 gained 45.18 points, or 0.71 per cent, to 6,408.08 and the Nasdaq Composite gained 245.09 points, or 1.16 per cent, to 21,374.76.
A Commerce Department report showed US inflation increased in June as tariffs on imports started raising the cost of some goods, supporting economists' expectations that price pressures would pick up in the second half of the year.
"Thursday's PCE was stronger than expected and throws cold water on the idea of (an autumn) rate-cut, as it's clear that lower interest rates are not justified at this time," said Clark Bellin, president and chief investment officer, Bellwether Wealth.
"Inflation remains sticky and justifies the Fed's decision to keep interest rates unchanged at Wednesday's meeting."
Separately, weekly jobless claims increased marginally last week, suggesting the labour market remained stable.
Attention now turns to Friday's non-farm payrolls report and a looming tariff deadline, with President Donald Trump refusing to extend trade talks for lagging partners.
Easing global trade war fears, signs of US economic resilience, and renewed AI optimism have set Wall Street on course for monthly gains.
The S&P 500 and blue-chip Dow are set for a third straight monthly gain - their longest winning streak in nearly a year - while the Nasdaq was on track for its best monthly run since March 2024.
On Wednesday, Federal Reserve Chair Jerome Powell diluted investor expectations for an interest rate cut in September after the central bank kept rates unchanged.
Traders now see a 58.8 per cent chance the Fed will stay pat in September as well, according to CME's FedWatch tool.
Powell said it was too early to predict a September rate cut, and that current policy was not restricting the economy. The statement came after stronger-than-expected GDP data for the second quarter.
The "hold" verdict prompted another jibe on Powell by Trump, while Treasury Secretary Scott Bessent said he expected an announcement on Powell's successor by year-end.
EU officials said European liquor could face 15 per cent tariffs from August 1 until a different agreement is reached, with talks set to continue in the autumn.
Trump's deal with South Korea on Wednesday cut the country's import tariff to 15 per cent from the previously threatened 25 per cent.
Among other stocks, Applied Digital soared 32.7 per cent after the data centre operator surpassed estimates for quarterly revenue.
Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.
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The BoE looks poised to cut interest rates for the fifth time in 12 months later on Thursday, but nagging worries about inflation are likely to split its policymakers and cloud the outlook for its next moves. Two Monetary Policy Committee members may push for a half-point rate cut, and two may lobby for no change. The dollar added 0.1 per cent to 147.53 yen. Gold gained 0.4 per cent to around $3,382 per ounce, buoyed by the weaker dollar. Crude oil clawed back some losses from Wednesday, when both Brent and West Texas Intermediate slid about 1 per cent. Brent crude futures were last up 20 cents, or 0.3 per cent, at $67.09 a barrel, while US West Texas Intermediate crude gained 22 cents, or 0.3 per cent, to $64.57 a barrel. Asian equities have risen, with Japanese shares hitting a record high, as tech-led gains on Wall Street, upbeat earnings and growing expectations for US rate cuts boosted sentiment. 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Hong Kong's Hang Seng rose 0.4 per cent, and mainland Chinese blue chips advanced 0.3 per cent. Australian shares edged slightly lower after hitting a record high on Wednesday. US stock futures were buoyant, with those for the S&P 500 up 0.3 per cent and those for the Nasdaq also rising 0.3 per cent. On Wednesday, the S&P 500 climbed 0.7 per cent and the Nasdaq Composite jumped 1.2 per cent. "Wall Street seems to have gotten its mojo back," analyst Kyle Rodda wrote in a note. "However, there are persistent risks to the downside. Downside surprises in official data are increasing," he said. "Valuations are also stretched, with forward price to earnings hovering around the highest in four years. And trade uncertainty persists." The US dollar remained lower against major peers on Thursday, with expectations of easier policy from the Federal Reserve stoked both by some disappointing macroeconomic indicators - not least Friday's payrolls report - and Trump's move to install new picks on the Fed board that are likely to share the US President's dovish views on monetary policy. Focus is centred on Trump's nomination to fill a coming vacancy on the Fed's board of governors and candidates for the next chair of the central bank, with current Chair Jerome Powell's tenure due to end in May. The dollar index, which gauges the currency against the euro, sterling and four other counterparts, gained slightly to 98.245, after dropping 0.6 per cent on Wednesday. The euro was little changed at $1.1657, following the previous session's 0.7 per cent jump. Sterling was steady at $1.3356. The BoE looks poised to cut interest rates for the fifth time in 12 months later on Thursday, but nagging worries about inflation are likely to split its policymakers and cloud the outlook for its next moves. Two Monetary Policy Committee members may push for a half-point rate cut, and two may lobby for no change. The dollar added 0.1 per cent to 147.53 yen. Gold gained 0.4 per cent to around $3,382 per ounce, buoyed by the weaker dollar. Crude oil clawed back some losses from Wednesday, when both Brent and West Texas Intermediate slid about 1 per cent. Brent crude futures were last up 20 cents, or 0.3 per cent, at $67.09 a barrel, while US West Texas Intermediate crude gained 22 cents, or 0.3 per cent, to $64.57 a barrel.
