Microsoft Briefly Hits $4 Trillion as Tech Stocks Surge

The stock market declined from its peak levels on Thursday after Microsoft delivered strong financial results and investors became more optimistic about artificial intelligence. The Nasdaq and S&P 500 indexes declined after Microsoft reached a $4 trillion market capitalization threshold which made it the second company to achieve this milestone after Nvidia.

The earnings announcement from Microsoft drove a 5% stock price increase while Meta Platforms reached its highest point ever after reporting positive AI-driven advertising revenue projections which led to a 12.1% market surge. The technology sector and communication services sector indexes rose to new heights because of Nvidia's more than 1% stock price increase.

The market experienced a decline in gains because investors were preparing to receive earnings reports from Apple and Amazon after market hours. The Nasdaq reached its peak at 1.2% before settling at 0.8% while the S&P 500 reached 0.45%. The Dow Jones Industrial Average remained unchanged while UnitedHealth reached its lowest point since two months ago.

The Commerce Department released data showing inflation increased during June because of new tariffs which created worries about rising prices. The Fed maintained its interest rate stability because of this development which also reduced expectations about a September rate reduction.

Markets expect two major events to occur this week: the release of the jobs report on Friday and the approaching deadline for Trump's tariff implementation. Major stock market indexes continue their path toward their third consecutive monthly increase despite ongoing market uncertainties.