Meta Adds $197 Billion in One Day, Microsoft Hits $4 Trillion

Wall Street ended July with broad losses on Thursday, but tech giants Meta and Microsoft delivered historic gains that dominated trading headlines.

Meta Platforms surged more than 11% in a single session, adding $197 billion to its market capitalization and closing at a record high. The rally followed quarterly earnings that shattered analyst expectations, with second-quarter earnings per share at $7.14 versus $5.92 expected, and revenue reaching $47.52 billion compared with forecasts of $44.80 billion.

The company, parent of Facebook, also issued bullish guidance, projecting third-quarter revenue between $47.5 and $50.5 billion, well above Wall Street estimates of $46.14 billion.

Meanwhile, Microsoft climbed 3.9% to an all-time high, increasing its market value by $150 billion in one day. The software giant briefly crossed the $4 trillion valuation threshold, becoming only the second listed company after Nvidia to reach that milestone.

Microsoft reported fiscal fourth-quarter earnings of $3.65 per share versus $3.37 expected, with revenue of $76.4 billion, surpassing the $73.8 billion forecast. For the first time, the company disclosed full-year revenue for its Azure cloud business, which reached $75 billion in fiscal 2025, a 34% year-over-year increase.

Despite the tech rally, U.S. indices closed lower as investors weighed strong corporate earnings against economic uncertainty and looming tariff decisions. The Dow Jones Industrial Average fell 0.7% (330 points), marking its fourth straight daily decline, though it eked out a modest 0.1% monthly gain. The S&P 500 slipped 0.4%, still up 2.2% for July, while the Nasdaq Composite edged down 0.03%, capping a 3.7% monthly advance.

Pharmaceutical stocks lagged after the White House confirmed that President Donald Trump had sent letters to 17 major drugmakers urging immediate action to lower prescription costs.

The contrasting performances highlighted an unusual trading day: broad market pressure on one side, and record-breaking milestones from two of the world’s largest technology companies on the other.