US stocks rise to new record highs

U.S. stocks rallied sharply on Thursday, buoyed by a wave of strong corporate earnings as investors absorbed the latest economic indicators and trade policy shifts.

The S&P 500 climbed 0.7% and the Nasdaq 100 advanced 1%, both reaching new record highs, while the Dow Jones Industrial Average added 100 points, reflecting widespread investor optimism.

Tech stocks were among the top performers. Meta Platforms surged 11% after delivering robust quarterly earnings and offering a confident outlook for third-quarter sales, driven by resilient advertising revenue and strong user engagement.

Microsoft shares jumped more than 8% following better-than-expected earnings and the announcement that annual revenue from its Azure cloud division had surpassed $75 billion—an important milestone that reaffirmed its competitive position in the fast-growing cloud computing space.

In the healthcare sector, AbbVie rose 4.5% after topping profit estimates, supported by strong results from its immunology and neuroscience drug portfolios. CVS Health rallied 7% as it raised its full-year guidance and reported solid performance in both its pharmacy and insurance segments, signaling steady consumer demand and operational efficiency.

However, not all earnings results were positive. Qualcomm fell 4% after releasing results that disappointed investors and diverged from the generally strong momentum in the semiconductor space, especially in light of recent enthusiasm around AI-related chip demand.

On the macroeconomic side, personal spending and consumption ticked higher in June, suggesting continued consumer resilience. Initial jobless claims remained low, further reinforcing the view of a sturdy labor market. Nevertheless, markets remained cautious due to elevated PCE price index readings, which came in above expectations and renewed concerns about persistent inflation. As a result, traders trimmed their expectations of a Federal Reserve interest rate cut in September.

Adding to the market’s tailwinds was an encouraging development on the trade front. U.S. equities received a modest boost after Washington announced lower tariffs on select imports from South Korea. This move helped ease trade tensions and supported broader investor sentiment by potentially alleviating some pressure on global supply chains.