Stock futures surge after two of America's biggest firms deliver profits that shatter recession worries
The second quarter earnings sent both their stock prices higher after market close.
Meta reported revenue of 47.52 billion in the April to June period, higher than the $44.8 billion expected by analysts.
The shock results sent its shares up 10 percent in after-hours trading.
Simultaneously Microsoft reported revenue of $76.44 billion, an 18 percent jump from a year earlier.
The figures were also higher than the $73.81 billion anticipated by Wall Street and sent the company's stock 7 percent higher.
The earnings reports cap off a day that appears to show the American economy pulling away from any risk of recession.
The latest Gross domestic product (GDP) figures released this morning showed the economy grew at three percent in the April through June period.
That was considerably better than the 2.3 percent anticipated by analysts.
The figures demonstrate a rebound after the economy contracted at the start of the year.
The unexpected pace was largely driven by a turnaround in the trade imbalance and renewed consumer strength.
Consumer spending rose 1.4 percent in the second quarter, better than the 0.5 percent in the first three months of the year.
In the first quarter imports surged as businesses tried to stock up on goods ahead of tariffs, however in the last quarter imports fell 30.3 percent.
Although exports dipped 1.8 percent in the period the drop in imports helped to ease the imbalance.
The news was swiftly followed by the Fed's decision to hold interest rates steady despite Trump's relentless calls for them to be lowered.
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- Reuters
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