US stocks jump as Microsoft (MSFT) and Meta (META) deliver blowout earnings, powering the Nasdaq and S&P 500 to new highs. Microsoft is nearing a $4 trillion market cap after Azure sales soar 39%. Meta raises its outlook and signals more massive AI spending. The Fed keeps rates steady for a fifth straight meeting, with Chair Powell sounding cautious on September cuts as inflation ticks up. Meanwhile, investors are shrugging off tariff fears as the US strikes more trade deals at lower rates than first feared. Apple (AAPL) and Amazon (AMZN) report after the bell.

Takeaways:

Microsoft, Meta earnings crush expectations, drive tech rally

Fed holds steady; September rate cut odds drop as inflation rises

Tariff risks ease as more trade deals settle at lower rates

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