US stocks open higher after Meta, Microsoft results. Microsoft joins Nvidia in $4T club

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U.S. stock opened higher, with the broad S&P 500 and tech-heavy Nasdaq scoring record highs, after Meta and Microsoft reported better-than-expected quarterly results and amid a flurry of trade deals.

Both companies are part of the so-called Magnificent Seven megacap, influential tech giants. After reporting strong results, Microsoft shares rose to push the software giant's valuation past the $4 trillion mark. The only other company that has achieved that is chip maker Nvidia, which did earlier this month to become the first company ever to top $4 trillion.

At 9:42 a.m. ET, the blue-chip Dow added 0.07, or 29.39 points, to 44,490.67; the broad S&P 500 rose 0.59%, or 37.83 points, to 6,400.73; and the tech-heavy Nasdaq gained 1.11%, or 233.88 points, to 21,363.55. The benchmark 10-year Treasury yield rose to 4.368%.

The moves come a day after the Federal Reserve held interest rates steady, continuing its wait-and-see approach on how President Donald Trump's tariff policies affect inflation and the economy. It also emphasized that the economy has slowed but remains resilient with a solid labor market. Two Fed governors dissented, which was the first time since 1993 that two members of the Fed's Board of Governors voted against the chair, according to Capital Economics. 

This morning, the Fed's preferred gauge of inflation rose 2.6% in the 12 months through June, just faster than the 2.5% mean estimate of economists polled by the Wall Street Journal. The so-called core rate that excludes the volatile food and energy sectors rose 2.8%, also just ahead of estimates.

Many economists believe Trump's tariffs will continue to boost inflation in the second half of the year. However, some expect the blip to be temporary.

Separately, the number of Americans filing new applications for unemployment benefits was at 218,000 for the week of July 26, compared with estimates of 224,000, according to economists polled by Reuters. Attention now turns to the monthly non-farm payrolls report at the end of the week as a gauge of how the labor market is holding up.

More earnings also are on tap, with another two Mag Seven companies, Apple and Amazon, due to report after the market closes.

Trade deals

Some countries are scrambling to strike a trade deal by the Aug 1 deadline. Here are some of the latest updates on what trade deals have been reached and progress on others:

• South Korea agreed to a 15% tax on the country's incoming goods into the United States.
• Treasury Secretary Scott Bessent said the U.S. had the makings of a deal with China, but it wasn't finished and still had to be run by the president.
• Commerce Secretary Howard Lutnick also said deals were made with Cambodia and Thailand.
• Trump slapped 25% and 50% tariffs on goods from India and Brazil, respectively,
• President Donald Trump and his Mexican counterpart Claudia Sheinbaum plan to talk about tariffs.
• A deal with Canada looks in doubt after Trump said in a social media post Canada's support for a Palestinian state “will make it very hard for us to make a Trade Deal with them.”

Corporate news

• Alignment Healthcare surprised with a second-quarter profit as sales topped forecasts. It also provided current quarter sales guidance above Street views. The stock advanced 20.84%.
• CVS topped analysts' forecasts for second-quarter results and raised its full-year adjusted earnings per share guidance. Shares added 5.33%.
• Roblox blew through second-quarter earnings estimates and raised its outlook for bookings, or virtual currency purchased on its platform, above Street views. Shares rallied 15.98%.
• Qualcomm reported better-than-expected quarterly results. Shares slid 3.26%.
• Microsoft beat estimates in the last three months of its fiscal year. It also issued a record capital spending outlook of $30 billion for the current quarter. Shares rose 5.98%, pushing the company's valuation above $4 trillion.
• Facebook-parent Meta topped quarterly estimates and issued sales guidance above analysts' estimates. The stock jumped 12.68%.
•  Applied Digital surpassed estimates for quarterly revenue. Shares rallied 32.8%.
• Mastercard reported higher second-quarter profits. Shares added 1.33%.
• Online auctioneer eBay posted stronger-than-expected second-quarter results. Shares soared 16.67%.
• Moderna's slashing 10% of its workforce by year end as demand wanes for Covid shots. Shares slipped 1.38%.
• Cigna's second-quarter profits came in ahead of forecasts. The stock dropped 5.17%.
• Ford beat second-quarter sales predictions and reinstated its full-year guidance, but raised its estimate ot the hit from tariffs. Shares dipped.
• Bristol Myers Squibb beat quarterly estimates and raised its full-year sales outlook but cut its adjusted earnings per share forecast. However, both remained above analysts' expectations. Shares lost 6.09%.
• Comcast topped second-quarter earnings estimates even as it continues to bleed broadband customers. Shares rose 2.85%.
• Abbview beat second-quarter estimates and lifted its full-year profit forecast above Street views. Shares added 3.48%.
• Arm Holdings earnings per share in the first three months of its fiscal year matched forecasts but sales were just shy. Shares stumbled 13.73%.
• Robinhood beat quarterly estimates in its second quarter. Shares lost 4.39%.
• Carvana's quarterly results jumped from a year-ago levels. Shares jumped 18.73%.

(This story was updated with new information.)

Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.