Microsoft hits $4tn market value as tech stocks rise to new highs

{"text":[[{"start":null,"text":"

"}],[{"start":13.08,"text":"Microsoft hit $4tn in market capitalisation on Thursday in a US tech share surge that also pushed Meta’s stock up by 11 per cent, on the back of blockbuster earnings from both companies the previous day."}],[{"start":28.62,"text":"The Nasdaq Composite rose as much as 1.6 per cent to a new record high after the opening bell, before giving up its gains to end the session flat."}],[{"start":39.4,"text":"The blue-chip S&P 500 index closed down 0.4 per cent as pharmaceutical companies fell sharply on President Donald Trump’s demand for lower drug prices, and following a hawkish Federal Reserve meeting that hit the index at the end of Wednesday."}],[{"start":57.36,"text":"The runaway earnings from Microsoft and Meta, which came after Wednesday’s close, have allowed investors to shrug off worries about US growth and warnings of a stock market bubble. The two companies are now worth a combined $5.9tn, about twice as much as the entire FTSE 100."}],[{"start":79.88,"text":"Microsoft climbed as much at 9 per cent in early trading, becoming the second company to hit the $4tn milestone after Nvidia earlier this month. Since Nvidia passed the mark on July 9, its market value has risen by another $400bn. The rise in Microsoft shares later eased to 4 per cent."}],[{"start":105.177,"text":"US tech stocks that have long dominated Wall Street lost some of their shine in the first quarter after China’s DeepSeek stunned the market with its cut-price artificial intelligence service."}],[{"start":118.28,"text":"But they have come roaring back in recent months to propel the S&P 500 to a series of record highs, with Microsoft, Meta and Nvidia having broken away from the other members of the so-called Magnificent Seven due to investor optimism surrounding their vast investments in AI."}],[{"start":138.83,"text":"“Mega-cap tech is no longer monolithic,” said Dec Mullarkey, managing director at fund manager SLC Management. “The Magnificent 7 [has] shrunk to the AI trinity.”"}],[{"start":150.96,"text":"This week’s bumper results had “reignited the hype around AI investment”, said Deutsche Bank analysts."}],[{"start":158.16,"text":"Amazon reported strong sales growth after the closing bell on Thursday, while Apple beat analysts’ revenue projections."}],[{"start":166.06,"text":"Some investors have been warning that the US stock market is approaching a bubble, with stock prices relative to sales volumes at all-time highs. But the strong earnings will allay some of those fears."}],[{"start":179.98,"text":"“The only way to justify current US stock valuations is to get upside surprises on earnings, and that’s exactly what these strong tech results are offering,” said Arun Sai, senior multi-asset strategist at Pictet Asset Management."}],[{"start":199.039,"text":"US tech shares have surged after falling sharply when Trump’s so-called reciprocal tariffs shook markets in April, and have broken well above the record highs set before “liberation day”."}],[{"start":213.44,"text":"The record equity prices come in spite of Friday’s deadline for the implementation of the president’s global trade levies, which will push the average rate of US import taxes on foreign goods to its highest since before the second world war."}],[{"start":230.44,"text":"“There was a view that US exceptionalism was overshadowed by political uncertainty — but when we speak to clients, they still believe in AI,” said Brian Weinstein, head of global markets for Emea at Bank of America."}],[{"start":246.14,"text":"“They are not going to give up their AI investments,” he added. “The AI story will continue, so US exceptionalism will continue.”"}],[{"start":256.52,"text":"Analysts at BlackRock said they maintained their overweight recommendation on US stocks because of the AI theme, while acknowledging that policy uncertainty is weighing on economic growth."}],[{"start":270.52,"text":"“US equities will regain global leadership as the AI theme keeps providing near-term earnings support,” they said."}],[{"start":287.52,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1754008147_5489.mp3"}