NEW YORK: Microsoft’s market valuation surged past $4 trillion early Thursday as investor enthusiasm for artificial intelligence propelled its shares higher following robust earnings.
The tech giant reported $27.2 billion in quarterly profits, with its stock jumping 5.3 percent.
Microsoft is now the second company to cross the $4 trillion mark, trailing AI leader Nvidia.
The Nasdaq Composite Index rose 1.3 percent to 21,396.04, while the S&P 500 gained 0.8 percent to 6,413.89, both setting new closing records.
The Dow Jones Industrial Average also climbed 0.3 percent to 44,584.16.
Market optimism was further boosted by news of a U.S.-South Korea trade deal, which imposed a 15 percent tariff on imports from the Asian nation.
Analysts viewed this as a positive resolution after months of uncertainty.
Despite concerns over rising inflation—June’s personal consumption expenditures price index increased to 2.6 percent year-on-year—tech stocks remained resilient.
Meta, Facebook’s parent company, soared 12.5 percent after posting $18.3 billion in quarterly profits, driven by advertising growth and AI investments. – AFP
