The S&P 500 and Nasdaq Composite rose on July 31, 2025, driven by strong earnings from Meta and Microsoft, signaling investor confidence in Big Tech’s growth. Meta shares surged 11% on July 31, 2025, after surpassing earnings estimates and offering robust guidance. Microsoft stock climbed 4% on the same day, pushing its market cap above $4 trillion. HSBC upgraded Meta to Buy with a $900 price target, while KeyBanc upgraded Microsoft to Overweight with a $630 price target. The Federal Reserve’s PCE index showed accelerated price growth in June, keeping inflation above the 2% target.

Following a decision to keep interest rates unchanged, the Fed Chair emphasized that no decision had been made on a rate cut in September. Trade tensions eased as agreements were reached, including a deal with South Korea on tariffs. The U.S. granted Mexico a 90-day reprieve on higher tariffs. The U.S. economy rebounded in Q2 of 2025, with GDP growing at an annualized rate of 3% between April and June. ETFs like VOO and QQQ are well-positioned to benefit from the current economic environment, with Big Tech stocks driving growth.

Read more at Zacks Investment Research: Monster AI Earnings & Economic Resilience to Power Up Growth ETFs – August 1, 2025