Microsoft’s market value surged past $4 trillion early on Thursday, July 31, 2025, a momentous achievement that makes it only the second company ever to reach this milestone, following artificial intelligence (AI) giant Nvidia. The dramatic increase was fueled by a blockbuster earnings report and a wave of investor bullishness for artificial intelligence, which propelled major indices further into record territory.
Both the S&P 500 and Nasdaq were trading above all-time closing highs early Thursday. This market rally was also supported by strong earnings from Facebook parent company Meta, which reported a 22% jump in revenue to $47.5 billion, and a new U.S. trade deal with South Korea that helped to calm market nerves. These positive factors offset data showing an uptick in U.S. inflation in June.
Microsoft’s shares climbed as much as 8% in early trading after the company reported quarterly profits of $27.2 billion, demonstrating its aggressive investments in AI are paying off. CEO Satya Nadella highlighted the booming sales in its Azure cloud computing business, which saw a 39% quarterly growth, and the company’s forecast of a record $30 billion in capital spending for the current fiscal quarter to meet soaring AI demand.
Meta also contributed to the market’s positive momentum. The social media giant’s shares soared as much as 12% after its earnings report, which blew past Wall Street estimates. Meta’s success was attributed to the robust performance of its core advertising business, which has been supercharged by its own investments in AI.
Meanwhile, the new U.S. trade deal with South Korea was also a relief for the markets. President Donald Trump announced the agreement, which will see South Korean imports face a 15% tariff—a lower rate than the previously threatened 25%. The deal was hailed by both sides as a resolution of terms with a key U.S. economic partner, reducing a period of trade uncertainty and easing concerns over potential inflationary risks from higher tariffs.
